Thai SEC warns about unregulated ICOs

The Thai Securities and Exchange Commission has warned the public about nine tokens and ICOs that are operating without its approval

What has happened?

The Securities and Exchange Commission (SEC) of Thailand has warned the public about investing in nine unauthorised digital tokens and initial coin offerings (ICOs).

What does this mean?

According to local news outlet the Bangkok Post, the Thai SEC has warned the public about nine tokens and ICOs that are operating without its approval.

The nine digital tokens and ICOs in question are: Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO and Kidstocurrency ICO.

"These digital assets have not applied for the SEC's approval and individuals who have been persuaded to invest in them should be cautious because there is a high investment risk", the SEC said.

The regulator also said that the digital tokens and ICOs have not met the necessary qualifications and did not have smart contracts assessed by SEC-licensed ICO portals.

Further, the information disclosure provided to would-be investors may also be inadequate and there are also concerns about insufficient liquidity.

"There are opportunists who persuade individuals to invest in digital assets by assuring investment returns generated from digital tokens that are structured like pyramid schemes," the SEC warned.

Next steps

If you want to take advantage of blockchain's huge potential and disruptive impact, while avoiding falling foul of ever-developing regulatory and legal requirements, visit our Hogan Lovells Engage Blockchain Toolkit.

Contacts
Mark Parsons
Partner
Hong Kong
Languages English
Topics Blockchain

 

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