Public urged to be cautious with ICO, advised to refer to licensed agencies

Public urged to be cautious with ICO, advised to refer to licensed agencies

January 19, 2018 0 By WFTV
The Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) have advised the public to be wary of any initial coin offering (ICO) schemes, reminding them to exercise caution before participating in such schemes.

“The public are reminded to exercise caution before participating in any ICO schemes by checking their names against the list of institutions that are licensed under the laws administered by regulators,” the two institutions said in a media statement today.

The central bank said issuers should also be mindful that the launch of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, might trigger regulatory requirements under securities laws.

Carrying on such activities without proper authorisation is an offence it said.

“No person is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC.”

The SC and BNM said they wish to draw the public’s attention to ICO schemes which may involve activities that are subject to laws administered by the SC and BNM.

Further, ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorisation under financial services laws administered by BNM.

Members of the public are advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by the SC and BNM.

“Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorised activities,” the statement said.