Securities Commission Malaysia warns investors over ICOs, calls in promoters of CopyCashCoin
By Digital News Asia January 8, 2018
- Cautions over heightened risks of fraud as ICOs operate online, may not be regulated
- Work with enforcement agencies, local, foreign, to monitor and take action where necessary
FOLLOWING a public statement released on 7 September 2017 regarding Initial Coin Offerings (ICOs), the Securities Commission Malaysia (SC) has noticed an increase in activities by new ICOs to solicit investments in crypto-currencies from the public at large, including senior citizens.
As reported in the media, a Singapore-registered foundation (Foundation) has claimed that it plans to launch an ICO named CopyCashCoin (CCC) on 10 January 2018. The SC is aware that the ICO operator has organised talks and seminars in major cities in Malaysia including Penang and Kuala Lumpur at various venues including cafes and hotels.
Given that the activities may fall within the remit of securities laws, the SC will be calling in key officers of the Foundation to inquire into its activities including the purported launch of CCC.
The SC would like to remind the public to seek legal or professional advice if they are in doubt about the applicable legal and regulatory requirements. Investors should be mindful of the potential risks involved in ICOs and investment arrangements involving digital tokens. Investors should seek to understand the product and find out more about the underlying projects, business and assets of the operator and the schemes, especially when there is insufficient information on the company or its legal structure. Investors should be cautious, and be wary of being exposed to heightened risks of fraud as the ICO operates online and may not be regulated.
The SC continues to work with Bank Negara Malaysia and other enforcement agencies, including our foreign counterparts, to closely monitor such activities and will take appropriate action where necessary.
For further information on ICOs, please click here.