South Korea's National Pension Service (NPS) has taken a noteworthy leap into the world of cryptocurrencies, as per a recent regulatory filing with the US Securities and Exchange Commission (SEC). The NPS ventured into the crypto market in the third quarter of 2023 with an investment of $20 million in Coinbase Global's shares, Bitcoin.com reported.
The pension service, established in 1988, operates as South Korea's major public pension fund. It is overseen by the National Pension Service Investment Management and boasts a mandate that encompasses both Korean citizens and foreign residents in Korea.
According to the SEC's disclosure, the NPS acquired 282,673 shares of Coinbase Global, valued at $20 million. This move has proved successful, with an appreciation of 40% in the value of the investment since it was purchased at an average price of $70.5 per share.
More Companies Buying Stocks of Crypto-Linked Firms
Presently, Coinbase's shares are trading at around $98 each, indicating a notable increase of 26% within the last month. NPS' strategic investment aligns with a broader global trend, where entities opt to buy the stocks of publicly traded companies within the crypto space.
The NPS's latest step happens when South Korea is stepping up its effort to fight crypto-related crimes. In July, the countryformed a special investigations unit to counter the surge of illegal activities within the sector. The unit prioritizes safeguarding investors' interests amid the absence of a comprehensive regulatory framework.
The absence of robust legal protection and inadequate regulations in the crypto sphere has led to losses for investors. The investigations unit stepped in as an interim measure pending the enactment of formal laws. It focuses on cryptocurrencies exhibiting high price volatility and actions against suspicious projects on digital asset exchanges, Finance Magnates reported.
Tightening Rules for South Korean Firms
The unit primarily focuses on combating a spectrum of illicit activities, ranging from unauthorized foreign exchange transfers to money laundering and illegal trading practices. Notably, South Korea's cryptocurrency sector has seen a surge in crypto-related crimes.
As a result, South Korean companies face new directives from the Financial Services Commission,mandating disclosures on their cryptocurrency transactions. These regulations, aimed at enhancing transparency and accountability, require companies to provide detailed information concerning their digital asset holdings, profits, and operational models.This article was written by Jared Kirui at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.