SC to question Singapore-registered foundation on ICOs

KUALALUMPUR: The Securities Commission Malaysia ( SC) will question a Singapore-registered foundation on its activities in Malaysia and purported launch of initial coin offerings ( ICOs), called CopyCashCoin (CCC) .

In a statement yesterday, the SC said, there has been an increase in activities by new ICOs to solicit investments in crypto- currencies from the public at large, including senior citizens.

The SC said as reported in the media, the foundation has claimed that it planned to launch CCC on Jan 10 this year and was 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 public are also reminded to seek legal or professional advice if they are in doubt about the applicable legal and regulatory requirements,” it said.

The SC said investors should also be mindful of the potential risks involved in ICOs and investment arrangements involving digital tokens, hence, 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 was insufficient information on the company or its legal structure.

“The 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,” it said.

The SC would continue to work with Bank Negara Malaysia and other enforcement agencies, including foreign counterparts, to closely monitor such activities and take appropriate action where necessary, it said. — Bernama