Seek legal advice before investing in ICOs, crypto-currencies — SC
KUALA LUMPUR: The Securities Commission Malaysia (SC) urged interested parties and members of the public to seek legal or professional advice before involving themselves in Initial Coin Offerings (ICOs) and investment arrangements involving digital tokens.
In a statement, SC noted that it is aware that a Singapore-registered foundation has claimed that it plans to launch an ICO named CopyCashCoin (CCC) on January 10, 2018. It said, it is also aware that the 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,” it said.
The SC continues to work with Bank Negara Malaysia and other enforcement agencies, including foreign counterparts, to closely monitor such activities and will take appropriate action where necessary.