SEC Thailand Issues Statement About Risks Of Initial Coin Offerings

Interest in initial coin offerings, or "ICOs" continues to spread among international regulators. Following the lead of Canada, Malaysia, Hong Kong, and the UK, the most recent regulatory body to issue a statement on ICOs is the Security and Exchange Commission, Thailand (SEC Thailand).

That statement sought to caution potential digital token purchasers that the rapid growth of ICOs gives the SEC Thailand concern that "in some cases, ICO may be deliberately used as a tool for fraud or scam." It noted that ICOs expose token purchasers to increased risks relating to "price volatility, inadequate liquidity, cybersecurity," and possible fraud. The statement also pointed out that the cross-border nature of ICOs means that token purchasers may have limited legal protection or recourse should they be exposed to fraud.