KUALA LUMPUR, Jan 9 — The Securities Commission (SC) has issued a cease and desist order against Singapore-based blockchain startup CopyCash, prohibiting its plan to launch an Initial Coin Offering (ICO) tomorrow.
The SC said its directive covered any roadshows or promotional events related to the ICO.
“There is reasonable likelihood that disclosures in CopyCash Foundation’s White Paper and representations to potential investors will contravene relevant requirements under securities laws,” SC said.
The SC also cautioned investors to be mindful of risks of fraud and do their due diligence when it comes to ICO schemes.
CopyCash had planned an ICO of 30 million CopyCashCoin, but previously put the move on hold pending a meeting with SC on its activities.
CopyCash also previously cancelled a press conference regarding its ICO offering.
CopyCash’s move comes at a time when the demand for digital currencies is picking up in the domestic market, following the incredible surge in the value of Bitcoin over the past year.
CopyCash identifies itself as a “Blockchain-based social travesting platform”.
Local daily theSun reported last week that CopyCash had planned to release 50 million CopyCashCoin in a token sale. CCC is a standard Ethereum ERC20 token that is reportedly the payment mechanism in the CopyCash ecosystem.
Ethereum is the second biggest cryptocurrency after Bitcoin.