BY CNA team - October 29, 2018
Beware unauthorised ICOs and tokens, Thai public warned
The Thai public has been warned by the country’s securities regulator against investing in nine unauthorised digital tokens and initial coin offerings (ICOs).
The Bangkok Post reported on Oct 26 that an investigation by the Thai Securities and Exchange Commission (SEC) found postings on social media promoting these tokens and ICOs.
The coins that have been identified by the SEC were Every coin, Orientum coin (ORT Coin), OneCoin and OFC coin, Tripxchain coin (TXC Coin) and TUC coin.
The ICOs on the list were G2S Expert, Singhcom Enterprise, Adventure hostel Bangkok and Kidstocurrency ICO.
Because these tokens and ICOs have not been approved by the SEC, the regulator warned that investors who have invested should be cautious due to the high risks.
These tokens and ICOs have also not met the necessary qualification by going through the ICO portals to have their smart contracts assessed. The SEC will then either give or withhold approval based on the assessments.
The SEC noted an inadequate disclosure of information for investors to make their decisions while these tokens and ICOs may not have sufficient liquidity for trade and investors cannot cash out.
The regulator singled out OneCoin, which has been the subject of investigations and prosecutions across the globe, as not under the supervision of the Monetary Authority of Singapore.
It adds that there are opportunists who persuade individuals to invest in digital assets by assuring them of returns structured like pyramid schemes.
The country’s Digital Asset Management Act came into force on July 16 regulating ICOs and crypto transactions.
Since then, a number of companies have voiced their interest in either conducting ICOs or operating crypto exchanges.
Six companies are seeking licenses to operate exchanges – Bitcoin Co, Bitkub Online Co, Cash2Coins Co, Satang Corp, Coin Asset Co and Southeast Asia Digital Exchange Co.
Two others are seeking licenses to operate as digital asset dealers – Coins TH Co and Digital Coin Co.
These companies are allowed to operate their businesses while the SEC assesses their requests, which they submitted within the stipulated 90-day period after the royal decree on digital asset businesses took effect on May 14.