Blockchain Firm CopyCash Receives Cease And Desist Order Ahead Of ICO

Announcements, ICO News, News, Regulation | January 10, 2018 By:

The Securities Commission Malaysia (SC) has issued a cease and desist order to CopyCash Foundation ahead of its planned initial coin offering (ICO) on January 10.

The CopyCash Foundation is an organization registered in Singapore. It claims to provide an ethereum blockchain social travesting platform that combines trading and investing. According to its website, it is aiming to provide a transparent social trading and copytrading platform, where trading signals from top traders are made public.

Last week, the Malaysian securities regulator issued a warning regarding the CopyCash ICO. At the time, the SC said it was meeting with the key officers of CopyCash to inquire into its activities, including the purported launch of CopyCashCoin (CCC).

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

The SC said that the cease and desist order covers all activities as described in the CopyCash Foundation’s white paper, including any roadshows, seminars or promotional events related to the ICO.

The regulator also advised investors to be cautious of the risks of fraud and exercise due diligence before participating in ICOs. It said that while they continue to facilitate use cases of digital assets in the capital market, it remains vigilant in monitoring ICOs given the heightened risks, and will not hesitate to take action where necessary.