While the cryptocurrency sector is currently plagued by various con-artist who attempt to fleece investors looking to get in to the crypto ecosystem, many cybersecurity firms and regulators are trying to keep pace to protect consumers. In an attempt to safeguard investors the Thai Securities and Exchange Commission (SEC) has publicly issued a warning concerning nine digital tokens and Initial Coin Offerings (ICOs), as they are not accredited.
The promotion of these nine ICOs have lead to them gaining in popularity, as they are persistently active through their social media. While they have grabbed the eyes of investors, the SEC has reported that these projects are not registered with any regulating body. After reviewing the ICOs, it has been made known that they have neither filed nor met the qualifications set for Thai SEC approval. The regulator also requires smart contracts to be assessed by ICO portals.
The SEC dictates that investors should be treated with extreme caution, and those already involved should be aware of the risks involved concerning their investments. This falls in line with the regulators general stance on online investments.
The SEC stated:
“Information disclosure for investment decision-making is also inadequate, while these digital assets might not have sufficient liquidity to trade and cannot be converted into cash.”
The SEC has released that since August, nearly 50 ICO have sought accreditation with the regulator, and currently only seven have been approved for crypto-related business. This approval system is currently a placeholder while the government solidifies its policies that should be released in 2019.