This week, the Securities and Exchange Commission of Thailand has alerted traders about up to nine unauthorized tokens and initial coin offerings (ICOs). These have neither been approved by the authorities nor met the necessary requirements. Also, the regulator allegedly considering letting asset management companies launch cryptocurrency funds.
The Thai Securities and Exchange Commission (SEC) warned the public about up to nine tokens and initial coin offerings (ICOs) that have not applied for approval. Nonetheless, the authority has discovered a post on social media, like on Facebook and YouTube, openly promoting and soliciting investment in them. Out of these nine, about five of them are tokens and the remaining four are ICOs.
According to the Thai SEC’s website, the tokens are every coin, Orientum coin, Onecoin, and OFC coin, Tripxchain coin, and TUC coin. The four ICOs are those issued by G2S Expert, Singhcom Enterprise, Adventure Hostel Bangkok, and Kidstocurrency.
The regulator has warned investors to take care because of their high investment risks, noting “Currently, no digital asset issuer has been approved and no one has filed an application for a license to issue tokens with the SEC.” Therefore, the SEC is warning investors to take caution when being solicited or receiving information about investments in digital assets.
The Thai SEC has found five key risks linked with the nine tokens and ICOs. First of all, they have not applied for approval or been approved by the commission. Secondly, they have not been evaluated by any SEC-licensed ICO portals. In addition, they may not provide adequate disclosure for investors. Also, their issuers and promoters have not been licensed to carry out digital asset-related activities. Lastly, they may not be liquid and may not be easily converted to cash, as detailed by the commission.
With the demand for cryptocurrencies in Thailand and abroad growing, the SEC is also “considering allowing asset management companies to launch digital asset funds to meet growing investor demands for digital assets,” as reported by the Bangkok Post.
Also, the news outlet stressed that no proposal has been submitted to the commission. Tipsuda Thavaramara, the SEC deputy secretary-general noted “We have to consider this carefully because it is a new type of investment asset… If something goes wrong, there will be a huge impact on the mutual fund industry.”
Finally, According to the publication, the Association of Thai Securities Companies said that many securities firms are interested in starting crypto businesses such as exchanges, brokers, dealers, and ICO portals. One of the largest asset management companies in Thailand, SCB Asset Management Co. Ltd., an affiliate of Siam Commercial Bank, revealed in February its desire to launch a cryptocurrency fund that invests in bitcoin futures.