Securities Commission to query key officers of CopyCash on ICO launch

PETALING JAYA: The Securities Commission Malaysia (SC) will be calling in key officers of Singapore’s blockchain startup CopyCash to inquire into its activities, including its initial coin offering (ICO) launch set for tomorrow.

The reason for the SC’s move is that the activities of CopyCash may fall within the remit of securities laws.

The SC said in a statement on Friday that it is aware that CopyCash has organised talks and seminars in major cities in Malaysia, including Penang and Kuala Lumpur, at various venues, including cafes and hotels.

The regulator stressed that it continues to work with Bank Negara Malaysia and other enforcement agencies, including the foreign counterparts to closely monitor such activities and will take appropriate action where necessary.

CopyCash is to hold a press conference for its ICO launch, whereby 30 million CopyCashCoin (CCC) will be made available through ICO, which forms part of the total issuance of 50 million, with the balance 20 million CCC via private and public pre-sale, tomoroww. It is not known if it is still on.

CCC is a standard Ethereum ERC20 token and it serves as the mechanism for payment in the CopyCash ecosystem. Ethereum is the second biggest digital currency by market capitalisation after Bitcoin.

CopyCash, which claims to be the world’s largest blockchainbased social travesting platform, is helmed by CEO Bobby Lieu, who is also the co-founder of the Shenzhen Digital Assets Exchange.

Seeing an increase in activities by new ICOs to solicit investments in cryptocurrencies from the public at large, including senior citizens, the SC advised 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.”

The SC also said 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.