SC issues cease and desist to CopyCash

In a statement, the SC said that it has not authorised any ICOs pending the finalisation of its guidelines.

KUALA LUMPUR: Securities Commission Malaysia has directed CopyCash Foundation to cease and desist all its proposed activities including a purported Initial Coin Offering (ICO) in Malaysia.

"This directive covers all activities as described in or incidental to CopyCash Foundation’s white paper pursuant to the ICO, including any roadshows, seminars or promotional events related to the scheme," said the SC in a press statement issued on Tuesday.

Last Friday, the SC said it was meeting with CopyCash Foundation's key officers to enquire into its activities, including the purported plan to launch an ICO

In its announcement on Tuesday, the SC said it found a "reasonable likelihood" that disclosures in the Foundation's white paper and representations to potential investors will contravene relevant requirements under securities laws.

The SC continued to advise investors on the risks of fraud and to exercise care when participating in ICO schemes. 

"While the SC continues to facilitate use cases of digital assets in the capital market, it remains vigilant in monitoring ICO schemes given the heightened risks, and will not hesitate to take action where necessary," it said.