Thai SEC Warns Public About Investing in Nine Unregistered Tokens and ICOs
The Thai Securities and Exchange Commission (SEC) has issued a warning regarding investing in nine electronic Assets and Initial Coin Offerings (ICOs), that have yet to be licensed by the operator, information outlet Bangkok Post reported Oct. 26.
The SEC reportedly initiated an investigation to electronic tokens and ICOs being promoted social networking platforms for investment, and also discovered nine instances wherein promoted electronic assets hadn’t been approved by the industry regulator.
Per the SEC, the alleged electronic resources and ICOs have filed an application to the SEC’s approval, nor have they fulfilled the necessary credentials and had smart contracts evaluated by ICO portals. The SEC reported that individuals people who have spent in the alleged resources ought to be skeptical of related investment risks.
The SEC reportedly revealed a warning regarding Ponzi schemes that convince people to put money into electronic assets by promising investment yields generated by tokens. “Information disclosure for investment decision can also be insufficient, while these electronic assets may not have enough liquidity to exchange and can’t be converted to cash,” the regulator included.
In August, the SEC explained that nearly 50 ICO projects expressed interest in getting certified after the Finance Ministry’s statement to present ICO regulations. The consent process takes up to five weeks depending upon entry of a program, the SEC will move the record to the Finance Ministry over 90 days.
After that month, the SEC approved seven companies to run cryptocurrency surgeries as part of their formalization of the nation’s domestic industry. The move forms part of a bundle of”transitional” principles regulating crypto companies operating in Thailand before the initial tranche of regulations which came into force May 14.
Thai Finance Minister Apisak Tantivorawong allegedly assured the new steps aren’t meant to prohibit cryptocurrencies or even ICOs.