ripple Partner HSBC Accused of Naked Short Selling in South Korea
South Korean prosecutors filed a criminal complaint against HSBC, one of the world’s leading investment banks, and three of its investors. This represents a huge improvement HSBCa partner of Ripple through its partnership with technology firm Metaco.
The defendant’s actions occurred between August and December in 2021 and involved short-selling participation in nine publicly traded companies, including Hotel Shilla Co., without owning or borrowing shares to sell them. This lawsuit filed against HSBC was the first lawsuit filed in South Korea after strict laws came into force in April 2021 to prevent illegal short selling practices.
According to the Capital Markets Law, individuals found guilty of short selling may be imprisoned for up to one year or receive profits from three to five times the profits derived from these activities.
Investigation expanded to include BNP Paribas
The investigation also includes investigating BNP Paribas, a major player in the financial industry, for short-selling stocks worth 40 billion won without prior borrowing.
The French bank and HSBC were penalized with heavy fines of 26.52 billion won; This was the largest fine ever imposed. South Korea for naked short selling violations. This progress underscores the Korean authorities’ commitment to the implementation of new regulations and market integrity.
HSBC’s digital asset custody initiative
However, despite these legal challenges, HSBC announced plans to expand its services into the digital asset space. HSBC in alliance with affiliated company Metaco Surge Labs Inc. seeks to provide custody services for tokenized securities. This project is designed to further develop HSBC’s Orion platform, which includes a protocol for tokenized gold that uses blockchain to represent ownership of physical gold in the form of digital tokens.
This is a direction that HSBC has adopted in line with the general trend of traditional financial institutions to adopt blockchain. digital assets. As institutional players’ interest in the digital asset market continues to grow, custody services are also increasingly in demand. HSBC’s entry into this market is a clear indication of the growth potential of this area; The institutional crypto custody market is estimated to reach almost $10 trillion by 2030.
Also read: Binance Executive Sues Nigerian NSA for Detention
✓ Share:
Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Ripple #Partner #HSBC #Accused #Naked #Short #Selling #South #Korea