Financial Services Commission, "Beware of COVID-19 Spread Through Illegal Virtual Currency Investment Seminars"

[Asia Economy Reporter Eunmo Koo] Financial authorities have urged caution to prevent the spread of the novel coronavirus infection (COVID-19) through illegal virtual currency investment seminars, which have been increasing recently.

On the 7th, the Financial Services Commission (FSC) announced that at the Central Disaster and Safety Countermeasures Headquarters meeting held on the 4th, the need to strengthen quarantine measures and protect consumers regarding illegal virtual currency investment seminars, which have been raised as an issue amid the recent spread of COVID-19, was discussed.

According to the FSC, as COVID-19 spreads recently, illegal virtual currency investment seminars are being conducted unofficially in indoor places such as cafes with small groups. It has been identified that existing illegal multi-level marketing and door-to-door sales operators are engaging in quasi-deposit-taking (principal guaranteed) and fraud (exaggerated advertising of returns) under the guise of virtual currency investment.

They are reportedly using the goodwill of victims by giving recruitment commissions to seminar attendees to encourage acquaintances to join, or by paying promised returns to victims in the early stages of the business to induce recommendations to acquaintances.

According to the Financial Supervisory Service (FSS), the number of suspected companies involved in virtual currency-related fraud reported to the FSS Illegal Private Finance Damage Reporting Center last year was 92, an increase of 48 companies compared to 2018.

The financial authorities requested that people refrain from attending small gatherings and investment seminars as much as possible in accordance with COVID-19 quarantine guidelines and urged caution to prevent financial damage.

In cases of fraud or quasi-deposit-taking damage, they asked to report to the FSS Illegal Private Finance Damage Reporting Center (☎1332). Under the ‘Act on the Regulation of Similar Receipt of Funds,’ those who engage in quasi-deposit-taking acts are subject to criminal penalties such as imprisonment for up to five years or fines.

Going forward, the FSC, FSS, the Office for Government Policy Coordination, and investigative agencies plan to share information obtained related to virtual currency investment seminars and respond as necessary.

This content was produced with the assistance of AI translation services.