Has transcriptional repression activity, partially through the recruitment of the corepressor TRIM28 but has also repression activity independently of this interaction (PubMed:22110054, PubMed:27658112). Essential during embryonic development, where it acts as direct repressor of IGF2-P0, placental-specific transcript of IGF2, in early development and regulates convergent extension movements required for axis elongation and tissue morphogenesis in all germ layers (PubMed:18701545, PubMed:22110054, PubMed:28522536). Also important for normal morphogenesis of extraembryonic tissues including the yolk sac, extraembryonic mesoderm and placenta (PubMed:18701545, PubMed:21094155). May enhance proliferation or maintenance of neural stem cells (PubMed:23071813). Interacts with TRIM28. Little or no expression detected in most adult tissues (brain, liver, kidney, spleen, testis, ovary). In the hippocampus, detected in neural stem cells within the subventricular zone and subgranular zone. Expressed ubiquitously at 7.5 dpc and 8.5 dpc, with especially high levels in the extraembryonic ectoderm (PubMed:18701545). Expressed strongly in head from stages 10.5 dpc to 12.5 dpc (PubMed:23071813). In fetal brain, shows highest expression levels at stage 13.5 dpc with low levels thereafter (PubMed:23071813). Detected in neural stem cells of the neocortex at stage 12.5 dpc (PubMed:23071813). KRAB domain 1, but not KRAB domain 2, is required for transcriptional repression. Both contribute to interaction with TRIM28. Differences in repressive activity between KRAB domain 1 and 2 are likely due to amino acid differences at multiple residues. Mutant embryos arrest at 9 dpc, they fail to complete gastrulation, have convergent-extension failure and a yolk sac membrane-ruffling phenotype (PubMed:28522536). Conditional knockdown in neural stem cells results in reduced brain weight at birth, however adult brain weights are normal and no other defects in brain development or morphology are apparent (PubMed:23071813). Double knockout for ZNF568 and IGF2 embryos and fetuses are found at near Mendelian ratios and indistiguishable of wild type littermates at 12.5 dpc to 18.5 dpc. However, after birth few dead pups are recovered (PubMed:28522536). May be due to competing acceptor splice site. Belongs to the krueppel C2H2-type zinc-finger protein family.