The Securities and Exchange Commission (SEC) has warned investors that Q Exchange Co Ltd is not a licensed cryptocurrency dealer and any investment made with the company might not be lawfully protected.
The SEC said Q Exchange, which offers electronic money advisory and cryptocurrency trading, has used print media, social media and online media for publicity.
Q Exchange is a joint venture with a South Korean company, providing exchange of cryptocurrencies such as bitcoin, ethereum, ripple, bitcoin cash, neo and omisego, Lokwannee reported. The company plans to unveil its own Q token on Oct 25.
"The SEC would like to inform the public that Q Exchange Co Ltd is not a licensed digital business operator," the regulator said. "The public and investors should be cautious in engaging in digital asset and electronic money trades with this firm because such actions might not be lawfully protected by the SEC."
The SEC has informed Q Exchange to cease its enticements for public investment and instructed the company to take precautions because such action could violate the Digital Asset royal decree of 2018.
Businesses publicising or advertising themselves as cryptocurrency dealers must be authorised entities and regulated under the royal decree, the SEC reiterated.
Investors can check with the SEC to determine whether a business is a licensed digital asset business operator.
The SEC recently warned the public about investing in nine digital tokens and initial coin offerings (ICOs) that have not been authorised by the market regulator.
The nine digital tokens and ICOs have been identified as 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.
Pursuant to the royal decree, digital assets cover cryptocurrencies, digital tokens and any other electronic data units as specified by the SEC.
The new legislation was enacted to regulate digital asset offerings and businesses undertaking digital asset-related activities.
