Malaysia’s security commission (SC) today said that it would summon key officers of Singapore-registered CopyCash foundation to enquire into its activities, including its purported launch of initial coin offering (ICO).
The foundation is planing to launch an initial coin offering (ICO), named CopyCashCoin (CCC), in Malaysia on 10 January 2018.
The commission has also noticed an increase in activities by new ICOs to solicit investments in cryptocurrencies from the public at large, including senior citizens.
“As reported in the media, a Singapore-registered foundation has claimed that it plans to launch an ICO named 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,” an SC statement said.
The commission warns investors to be mindful of the potential risks involved in ICOs and investment arrangements involving digital tokens. It asks people to seek legal or professional advice if they are in doubt about the applicable legal and regulatory requirements.
“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 warns.
The SC continues to work with central bank, Bank Negara Malaysia, and other enforcement agencies, including its foreign counterparts, to closely monitor such activities and will take appropriate action where necessary.
CopyCash Foundation is an organisation regulated by the law of Singapore and the ACRA. CopyCash provides a trading and investment platform, which it calls ‘Social Travesting’. Users can participate in foreign exchange, cryptocurrencies, indices and stocks markets by copying the top traders in CopyCash community. Its blockchain-enabled system allows each transaction data to flow with no additional database or server required.