CopyCash could be in trouble with the Malaysian Securities Commission (SC) over its upcoming ICO, set to begin Tuesday. The ICO has been called in to discuss their activities in a bid to determine whether or not they fall under the purview of securities legislation.
CopyCash describes itself as “the world’s largest blockchain-based social travesting platform.” According to their white paper “social travesting” is transparent trading and investment within their platform. Users pay using the CopyCashCoin (CCC), an ERC20 token.
ICO “May Fall Within Remit of Securities Laws”
The SC was alerted by Singapore-registered CopyCash’s seminars and lectures throughout Peninsular Malaysia. In a statement they said, “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 CopyCashCoin.”
The Malaysian SC works with Bank Negara Malaysia, among other enforcement agencies, to monitor activity in the space. They are particularly concerned that the investor-pool for ICOs is widening to take in people who might not have enough experience to make informed investment decisions.
In their statement they say they have, “noticed an increase in activities by new ICOs to solicit investments in crypto-currencies from the public at large, including senior citizens.”
30 million CCC are to be available in the ICO, with the remaining 20 million available in pre-sale.
The SC’s warning comes after a statement in September where they cautioned Malaysian investors on the “emergence of digital token based fundraising activities” and warned them of the need “to seek legal or other professional advice if there are doubts on the legitimacy of these schemes.”
Their most recent comment underlines this position and again urges investors to be “mindful of the potential risks involved in ICOs and investment arrangements involving digital tokens.”