SC bans CopyCash schemes in Malaysia

> Regulator halts Singapore blockchain startup’s ICO after finding ‘reasonable likelihood’ its representations could contravene securities laws

PETALING JAYA: The Securities Commission (SC) has directed Singapore’s CopyCash Foundation to stop promoting investments schemes here, after it found that certain representations made by the company could fall foul of its securities laws.

The move marks the regulator’s first public censure of a specific company involved in digital currency prior to its launch.

In a press release issued yesterday, the SC said it directed CopyCash Foundation to immediately cease and desist all its proposed activities including a purported plan to launch an ICO.

The SC said the 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.

“The directive was issued by the SC 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 advised 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.”

When contacted, CopyCash’s media representatives declined to comment.

The directive follows the regulator’s statement last Friday that it is calling up the Singapore-based blockchain startup’s key officers to enquire about its proposed digital token investment.

CopyCash was supposed to meet the media yesterday on its ICO launch. However, it was cancelled a day before the event after the SC warned of risks associated to the ICO.

CopyCash had organised talks and seminars throughout the country prior to bringing the investment scheme to the public.

It had planned to release 30 million CopyCashCoin (CCC) under the ICO. CCC is a standard Ethereum ERC20 token, whereby Ethereum is the second biggest digital currency by market capitalisation, after Bitcoin.

As at 6pm, Ethereum price gained 8.65% to US$1,249 (RM4,990).