Thailand’s Securities and Exchange Commission (SEC) has warned crypto investors from investing their money some flimsy initial coin offerings (ICOs) that are not authorized and registered by the SEC. On Oct. 25, the Bangkok Post reported that the Thai market regulator has warned against investing in ICOs promoted through a plethora of online media, which the SEC has neither accredited nor acknowledged.
The Thai SEC conducted an investigation recently after it discovered that a number of unrecognized sales offering digital assets and cryptocurrencies were being advertised on social media platforms to Thai investors. The results of the investigation revealed that there are nine of such unregistered and unauthorized ICOs which 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.
Previous experiences have shown that ICOs like these could be Ponzi or pyramid schemes in which more and more investors are drawn in to invest in these ICOs, returns are generated through incoming investment, and the scam goes on, until payout.
As reported by Bangkok Post, the Thai SEC said “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 Finance Ministry of Thailand earlier this year announced that ICO regulations would be forthcoming, and the tokenization process would have to be certified by the ministry before it is open to the public. This process would take up to five months from initiation to completion.
Despite being investigated, these unauthorized ICOs and the unregistered digital tokens have submitted their application to the SEC and are currently operational.