Thai Authorities Spread Caution to Investors About 9 Cryptocurrency Token Scams
Thai Authorities Warn Investors About 9 Scammy Crypto Offerings
As per a report published via a trusted Thai media outlet, the nation’s Securities and Exchange Commission (SEC) has warned investors in relation to nine digital tokens and Initial Coin Offerings (ICO’s). The products in question have not been accredited by the Thai financial regulator and thus have been deemed to be illegitimate.
In relation to the case, it is being reported that the SEC had initiated an initial investigation into various altcoins and ICOs being promoted on social media platforms for direct investment. However, upon scrutiny, it was found that nine of the offerings being investigated had not been authorized by the country’s market regulator.
The Inside Scoop
The Thai SEC claims that the assets in question were illegal due to the fact that the parent companies behind these offerings had not filed for an approval with the required regulatory body. Not only that, the ICOs were also found to have not met the necessary smart contract assessments that are needed by the SEC (before they can be approved). As a result of this, the government body said that those individuals who have invested in these ventures should be extremely cautious from here on out.
In a statement released by the SEC, the agency noted that:
“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 regulator added.”
It is also worth remembering that earlier in August, the Thai SEC announced that around 50 ICO projects had expressed interest in obtaining certifications from them. This was done following an announcement made by the nations’ Finance Ministry to introduce ICO regulations so as to promote a healthier crypto culture within the SE Asian powerhouse. On this matter, the SEC also noted that the authorization process would take up to five months of review before which the Ministry would make its decision to approve any licenses.
As things stand, the Thai SEC has approved seven businesses to carry out crypto operations within the country. This move is a part of a larger initiative to form a domestic crypto framework so as to allow investors and enthusiasts to become part of the burgeoning cryptocurrency market.