Malaysian financial regulators alert investors to ICO risk

nnnPost Comment: After China banned ICO, Malaysian financial regulators also issued a statement to alert investors to the risk of ICO, pointing out that they need a thorough understanding of the project to prevent fraud. Because this new type of financing may be exploited by criminals, involving money laundering or terrorist financing. In the global context, governments are concerned about the ICO and may strengthen control of the ICO.n
nnTranslated by: Inan
nThe Securities Regulatory Commission of Malaysia is the statutory body that oversees and enforces financial regulation and has issued a statement that warns investors on the risk of the first tokens issue (ICO).n
nAccording to its statement issued on 7 September, ICO projects are not regulated, may lead investors to fraud, may also involve money laundering and the financing of terrorism.n
nIn addition, the operator of the token sales can carry out the activity abroad, which means that the recovery of the investment “may be subject to foreign laws or regulations.”n
nThe regulator concluded that investors should learn more about the project and seriously weigh the risk before starting to invest.n
nPrior to the announcement, other countries also issued similar warnings on tokens sales, including Russia and China, which recently banned ICO. In the United States and other places, SEC and other institutions will be in some cases ICO tokens as securities.n
nICO has received a lot of attention, even institutional investors have noticed it, but the current situation may greatly weaken the development of this new way of financing.n
nAccording to CoinDesk’s recent block chain status report, ICO as a financing tool for the second quarter of this year, its financing has exceeded VC investment and Kickstarter and other financing platform. According to the survey, the total amount of venture capital in the quarter reached $ 235 million, while the ICO was $ 797 million, more than three times the traditional venture.n

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