The Securities Commission (SC) has directed Singapore-based blockchain-powered trading and investment platform CopyCash to immediately cease and desist from all its proposed activities, including a purported plan to launch an Initial Coin Offering (ICO) in Malaysia.
The commission has also asked CopyCash, which was planning to launch its ICO, called CopyCashCoin, in Malaysia tomorrow, to stop roadshows, seminars, and other promotional events related to the scheme.
The directive is based on an enquiry launched last week by the commission, which has found there is a reasonable likelihood that disclosures in CopyCash’s white paper and representations to potential investors contravene relevant requirements under securities laws of Malaysia.
The SC has also advised investors to be cautious of the risks of fraud and exercise due diligence before participating in ICO schemes. The SC also said it is closely monitoring various ICO schemes in the country, given the heightened risks.
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.