SC issues cease and desist order to CopyCash Foundation
By Digital News Asia January 10, 2018
- Securities Commission Malaysia stops CopyCash from launching its Initial Coin Offering
- SC to monitor ICO schemes given heightened risks
The Securities Commission Malaysia (SC) has directed CopyCash Foundation to immediately cease and desist all its proposed activities including a purported plan to launch an Initial Coin Offering (ICO) on 10 January 2018 in Malaysia.
In a press statement issued on Jan 9, the SC said this directive covers all activities as described in or incidental to CopyCash Foundation’s white paper pursuant to the ICO, including any roadshows, seminars or promotional events related to the scheme.
Accrding to the SC this was following its inquiry after it found that there is a reasonable likelihood that disclosures in CopyCash Foundation’s white paper and representations to potential investors will contravene relevant requirements under securities laws.
The SC advises investors to be cautious of the risks of fraud and exercise due diligence before participating in ICO schemes. While the SC continues to facilitate use cases of digital assets in the capital market, it remains vigilant in monitoring ICO schemes given the heightened risks, and will not hesitate to take action where necessary.
CopyCash had initially planned to conduct an ICO of 30 million CopyCashCoin previously but had to put the plan on hold pending a meeting with the SC.
CopyCash had also organised a press conference on Jan 9, the eve of its ICO, but cancelled it at the eleventh hour.