With the crypto industry becoming an active breeding ground for scam activities, financial security agencies across the globe are also doing their best to step up their games when it comes to protecting citizens from this scams. The Thai Securities and Exchange Commission ( Thai SEC ) in its bid to protect investors from getting scammed has issued a warning against investing in nine digital tokens and Initial Coin Offerings ( ICOs ). The Thai SEC made it know that these Nine entities are not accredited.
Warning from the Thai SEC
The Thai SEC made it know that this nine ICOs where discovered in its cause of investigating digital tokens and ICOs being promoted on social media platforms for investment.
Based on the regulator’s report, although these ICOs where quite popular, they are not registered with any regulator. The ICOs have neither filed an application for the SEC’s approval nor have they met the necessary qualifications and had smart contracts assessed by ICO portals.
As a result of this, the Thai SEC has issued a warning that these Nine ICOs should be avoided and that those who have invested in the alleged assets should be wary of associated investment risks.
The Regulator also made sure to inform the public of the risk involved with any form of online investments.
It started 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,”
Accreditation Process by the Thai SEC
The Finance Ministry made it known that the process of receiving accreditation to launch an ICO takes up to about 5 months. So if any company which hasn’t been around for that long, is claiming accreditations, such company should be avoided and reported.
The SEC also made it known that, in August, almost 50 ICO projects expressed interest in becoming certified following the Finance Ministry’s announcement to introduce ICO regulations.
Out of these 50, the Thai SEC only approved seven of them to conduct cryptocurrency operations as part of the formalization of the country’s domestic market.
The approval process has been identified as a part of the “transitional” rules governing crypto businesses operating in Thailand geared towards the main reputation expected to become effective next year.