Malaysian finance regulators warn about the risks of investing in ICOs.
Malaysia’s Securities Commission (SC), the institution responsible to oversee and enforce the country’s financial regulations, has reminded everyone especially investors about the risks of investing on ICOs.
The SC noted the emergence of digital token based fundraising activities / investment schemes in Malaysia and elsewhere, which may be referred to as “initial coin offerings”, “initial token offerings”, “token pre-sale”, “token crowd-sale”, collectively referred to as ICO schemes.
In its official website, the commission released last September 7, 2017 a statement about ICO schemes that are reportedly unregulated and have the possibility to expose investors to fraud and funds deficit. Accordingly, this can result to terrorism and/or the potential of money laundering in the country.
Moreover, the regulating body reminded all investors to be extra cautious about such ICOs that they will come across. The commission further stressed the bigger possibilities that token sales operators are coming from outside the country and are not governed by the Malaysian laws and regulations.
Investors are reminded to weigh risks about acquiring ICOs and investing their money to another cryptocurrency trading. The said statement was issued by the commission to include other countries propagating bans to ICOs because of the same issues, like Russia and China.
The move is similar to what the Securities Exchange Commission (SEC) of the US did earlier this year as it has also invested in researching and strengthening ICOs’ securities and regulations.
About the Author: Michael Volkmann is an entrepreneur with a focus on business operations and finance. He has worked with many small businesses helping them with their M&A for over 6 years. When not in front of the monitor, he spends his time snorkeling and traveling. You may sometimes catch him on Twitter.