Malaysia releases Copycash ICO ban

nRunaway Comment: Malaysian Securities Commission suspended ICO project sponsored by the Copycash Foundation, saying the project information is not available. Last year the agency made public announcements on the risks of cryptocurrency investment, including common illegal uses such as money laundering. However, because the project is mostly for foreign investors, it may have little impact on the investment environment in the country.n
nTranslation: Annie_Xun
Malaysian financial regulators have issued a ban on an ICO team to suspend any business activity in the country. This is just another case in which government agencies in different regions try to limit public investment in ICO projects within the jurisdictional sphere.n
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Malaysia says no to ICOn
The Securities Commission Malaysia (SC) issued a directive on Tuesday demanding that the Copycash Foundation cease all activity plans immediately, including the January 10, 2018 ICO initiative.n
This SC Directive covers all activities of the Copycash Foundation’s ICO white paper, including road shows, forums and promotions planned for the country. The SFC said the order was found to be “a legitimate possibility for the White Paper and speeches for potential investors of the Copycash Foundation to disclose information that would violate the requirements of securities laws.”n
As can be seen from the project website, Copycash, the forex trading and cryptocurrency trading platform, seems to be primarily targeted at Chinese investors. With that in mind, the Malaysian directive may not affect the platform.n
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Always vigilantn
SC also advises investors to be wary of the risk of fraud by completing their commitment prior to participating in the ICO project. The agency added that while it “continues to support digital asset use cases in capital markets, it remains vigilant in its monitoring of ICO projects because of the high risk that there is no hesitation to act once necessary.”n

In September 2017, SC issued an official statement clarifying the potential risks of investing in ICO, including the difficulty of verifying “the authenticity of ICO” and the “recovery of investment funds that may involve foreign laws and regulations when the ICO project is set up overseas” Will be a challenge, “” digital tokens in secondary markets cause potential risks of poor liquidity, volatility and pricing opacity “, regulatory oversight and lack of” legal protection for investors. ” SC also mentioned the risks of money laundering and terrorist financing risks.n

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