With the increase in the number of unregistered tokens and ICOs, the Security and Exchange Commission (SEC) of Thailand has warned the public not to invest their money in unregistered tokens and ICOs. As per the news outlet Bangkok, the assets are not approved by the regulators.
The Securities and Exchange Commission of Thailand investigated all the tokens and ICOs which were using social media platforms to raise their capital. In their reports, they concluded that nine of them were not approved officially by the regulators and were heavily promoting their activities on Facebook and YouTube.
As per the SEC, these assets have not met the required qualifications neither have they filed an application for the approval of the SEC. The SEC has warned the users to invest in these digital assets at their own risk.
The regulatory authority in its statement also said that there is an inadequate disclosure of information for investment decision making. These assets have no such liquidity to trade and therefore impossible to get converted into cash.
In the month of August, the SEC stated that with the announcement of Finance Ministry, in order to develop ICO regulations, nearly 50 ICO projects showed interest to become certified. This whole authorization process takes around five months as after the application submission, within three months, the SEC will transfer papers to the Ministry of Finance. The Ministry has around 60 days to come to a decision of approving the license.
The digital tokens involved are Every Coin, ORT, OneCoin, OFC Coin, TXC, TUC Coin, whereas, ICOs are G2S Expert ICO, Adventure hostel Bangkok ICO, Singhcom Enterprise ICO, and Kidstocurrency ICO.
One of the digital assets, OneCoin, also functions in Singapore without any consent from the Monetary Authority of Singapore (MAS).
Thailand, the first country whose ruling party is very supportive for the financial innovations. The authorities provide a sandbox for the parties in order to simulate the products to the public.
The reason why many financial watchdog issue public warning for unauthorized activities that involves investment is because there are a lot of fraudulent investment schemes reported so far.