SC Malaysia alerts investors of unauthorised ICOs
04 July 2019 Kuala Lumpur
Image: Shutterstock
The Securities Commission Malaysia (SC) has cautioned public investors against unauthorised initial coin offerings (ICOs).
The statutory body reiterated that it has not recently authorised any ICOs, as it is still awaiting finalisation of its regulatory guidelines.
The SC emphasised the risks that come with ICO programmes, such as a lack of verified authenticity, potential involvement of “unauthorised” individuals, little legal protection for investors, and increased susceptibility to fraud, money laundering and cyber security risks.
Furthermore, the SC warned investors against trading on digital asset exchanges (DAX), advising that even if a platform appears legitimate, it may still lack SC authorisation.
The SC has three existing authorised DAX market operators in Malaysia: SINEGY Technologies, Tokenize Technology and Luno Malaysia.
The current penalty for operating, launching or marketing an unauthorised ICO or DAX ranges from a fine to a maximum ten year imprisonment under securities law.
The statutory body reiterated that it has not recently authorised any ICOs, as it is still awaiting finalisation of its regulatory guidelines.
The SC emphasised the risks that come with ICO programmes, such as a lack of verified authenticity, potential involvement of “unauthorised” individuals, little legal protection for investors, and increased susceptibility to fraud, money laundering and cyber security risks.
Furthermore, the SC warned investors against trading on digital asset exchanges (DAX), advising that even if a platform appears legitimate, it may still lack SC authorisation.
The SC has three existing authorised DAX market operators in Malaysia: SINEGY Technologies, Tokenize Technology and Luno Malaysia.
The current penalty for operating, launching or marketing an unauthorised ICO or DAX ranges from a fine to a maximum ten year imprisonment under securities law.
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