The Malaysian Securities Commission (SC) seems to have taken a cue from the global interest of regulatory agencies on ICO and has started scrutinizing companies launching ICOs in Malaysia. A Singaporean company CopyCashCoin (CCC) seems to be the litmus test on the preparedness of the SC to ensure that ICOs are operated within the ambits of Malaysian securities laws.
CopyCashCoin, the Singaporean startup ICO was billed for launch, January 10 in a Malaysian hotel Hilton Petaling Jaya after the company had series of presentations and seminars to investors across the country. The Securities Commission said that though they were aware of the ICO, that they were inviting the team to ensure that they were not breaching any Malaysian securities laws and to ensure that investors were properly protected.
The SC used the opportunity to inform the Malaysian investors and public of the risks involved in investing in digital currencies. They further warned that investors should be informed about the legal and regulatory status of any ICO they are about investing in and that they should conduct due diligence to ensure that they do not become victims of scams, knowing that it is a very high possibility with internet-based investments.
The SC said that getting adequate information is necessary before investors part with their money or cryptocurrencies, especially due to the fact that crypto assets have proven to be volatile. According to them, investors should be knowledgeable about what it is the company they are investing with is involved in and whether the project is worthwhile.
At the end of the meeting with CopyCash, the SC said that it had strong reasons to believe that the CopyCashCoin token contravenes some Malaysian securities laws and issued a cease and desist order to the company hours before the launch. Bobby Lieu, the CopyCash CEO who is Malaysian later apologized to investors for the inconvenience the stay order may have caused them. He said that in as much as the company would have loved to issue them tokens, that they have been advised by their legal team not to.
CopyCash later informed potential Malaysian investors that they would be informed in future about the exchanges in which the CopyCashCoin are listed in if they still would invest. CopyCash planned to raise $16.6 million from the ICO.