Malaysia Issues Cease and Desist Order to Copycash ICO
The Malaysian financial regulator has issued an order to the team behind an Initial Coin Offering (ICO) to halt any operations in the country. This is just another example of how authorities in different regions are trying to limit access to ICOs from the investing public under their jurisdictions.
Malaysia Says No to ICO
This SC directive covers all activities as described in Copycash Foundation's white paper for the ICO, including any roadshows, seminars or promotional events related to the scheme in Malaysia. The commission says that the order was issued following an 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.”
Judging by its website, the forex and cryptocurrency social trading platform Copycash seems to be geared toward Chinese investors more than anything else. Considering this, the Malaysian directive might not affect it at all. News.bitcoin.com has reached out for comment and will update when it arrives.
Back in September 2017 the SC issued an official statement addressing the potential risks associated with investing in any ICO. The issues mentioned include the difficulty to 'verify the authenticity of' an ICO, challenges regarding 'the recovery of invested monies may be subject to foreign laws or regulations' in the event that ICOs are based outside of Malaysia, the potential for 'digital tokens traded on a secondary market' to 'give rise to risks of insufficient liquidity or volatile and opaque pricing', and the absence of regulation and 'legal protection for investors'. The SC also mentioned concerns regarding money laundering and terrorist financing risks.
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