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Thai’s SEC enlisted nine unregistered ICO has high-risk investment. The regulator further explained these unregistered ICOs mode of operation and advice investors to steer off from such ICOs.

The Thailand Securities and Exchange Commission has delivered an investment caution against Initial Coin Offerings (ICOs) working in the country without registration, recognition, and supervision.

The report according to the Bangkok Post indicated that the Securities and Exchange Commission has swung into action after discovering some unregistered coin sales currently promoted in Thailand through various social media platforms including YouTube and Facebook.

SEC declares unregistered cryptocurrency entities as high investment risk

In its warning, the Securities and Exchange Commission exactly mentioned nine unregistered bodies involve in selling cryptocurrency within its dominion. The commission enlisted these companies, which include OneCoin,  Orientum Coin, Every Coin, OFC Coin, Singhcom Enterprise ICO, G2S Expert ICO, TUC Coin, Kidstocurrency ICO, Adventure hostel Bangkok ICO, and Tripxchain Coin,

Furthermore, the regulator indicated that none of the aforementioned companies has undergone through the required steps for approval to make them official. They haven’t shown any evidence of meeting the set criteria or have their smart contracts assessed for adequacy. The regulator classified these investments as “high risk investments” and advised investors to stop investing their resources on such entities.

In 2017, the SEC in Thailand released its own regulation regarding ICO. A guideline among the regulations states that,

ICO fundraising needs to be done through an ICO portal approved by the SEC. The ICO acceptance criteria may include due diligence and screening of funders from dishonest people. The source code of the smart contract will automatically be enforced against the contract. After the sale, the SEC publishes a copy of the statement on the SEC website.

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According to the regulator, the cases regarding the aforementioned ICOs, there is no sufficient information to decisively present an investment case. To make matter worse, there is no concrete proof to show that the coins being sold will have sufficient liquidity to be listed for trading. Because of this, they don’t have the capacity to be used in exchange for fiat or other cryptocurrencies. This signifies that investors will be investing in a digital asset that is worthless.

Cross-Border ICO Scams throughout Southeast Asia

In another development, the SEC also mentioned that the Monetary Authority of Singapore had previously issued warnings against OneCoin and its affiliated businesses. It further states that OneCoin is operating without supervision from the regulators. In several jurisdictions, OneCoin has attracted various investment warnings with most of these warning noting that its promoters are likely swashbucklers seeking out ways of taking advantage of naïve investors in the Southeast Asia region.

SEC further explained their various modus operandi. According to the regulators, these entities present cryptocurrency investment schemes, which are similar to the classic pyramid schemes. These schemes require additional investors through an ever-expanding rate to be operative. Once the rate of new members drops, the scheme fails while the promoters escape with massive returns thereby leaving the naïve investors at a loss.