Securities Commission Malaysia (SC) has issued a cease and desist (C&D) order to CopyCash Foundation. The C&D was in regards to a scheduled initial coin offering (ICO) launching on January 10, 2018.
SC issued a warning this week to investors regarding the CopyCashCoin ICO. Company executives have been in Malaysia scheduling events to promote the offer to investors. SC stated that given these solicitation activities may fall under existing securities laws, the SC would be calling in key officers of the Foundation to inquire into its activities.
The C&C covers all activities including in the CopyCash Foundation’s white paper and includes roadshows, seminars or any promotional events. CopyCash Foundation is registered in Singapore.
CopyCash Foundation claims that users of their platform enable participation in Foreign Exchange, Cryptocurrencies, Indices and Stocks markets “by simply copying the top traders in our community.”
The SC directive was issued following an inquiry that “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.”
The SC advises investors to be cautious of the risks of fraud and exercise due diligence before participating in ICO schemes. While the SC continues to facilitate use cases of digital assets in the capital market, it remains vigilant in monitoring ICO schemes given the heightened risks, and will not hesitate to take action where necessary.
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