Bank Negara adds LaVida Coin to consumer alert list

NST Online

KUALA LUMPUR: Bank Negara Malaysia (BNM) has listed VI Profit Galaxy (DSV Cryptoclub & LUX Galaxies, the operator of cryptocurrency called LaVida Coin in its financial consumer alert list.

The list consists of companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by BNM.

“Please take note that the list is not exhaustive and only serves as a guide to members of the public based on information and queries received by BNM,” it said on its website.

The latest list consists of 423 companies.

On Monday, the Securities Commission Malaysia (SC) said that it was in the midst of reviewing all available information in relation to a newly-launched cryptocurrency known as LaVida Coin to determine whether there had been any breach of securities laws.

LaVida Coin is reportedly the brainchild of cosmetics queen Datuk Seri Dr Hasmida Othman, better known as Datuk Seri Vida.

In a recent interview with Utusan Malaysia, she said she came up with the idea after gaining a healthy profit from her investments in cryptocurrency several years ago.

She said, with help from a team of professionals, she decided to create the Lavida Coin. She was quoted as saying that she expected the value of the Lavida Coin to increase by the year-end.

According to reports, Lavidacoin will operate its own blockchain as a data storage medium. Its token can be used to purchase a good and service offered by issuer of the token or authorised merchant and institutions.

On August 27, the Securities Commission (SC) said it was reviewing all available information to determine whether the offering of Lavidacoin breaches any securities law.

This came after SC received queries on the issuance of a whitepaper for the offering of Lavidacoin to members of the public.

The whitepaper claimed that Lavidacoin is offered as a private funding initiative to raise development capital or funds for three projects.

The paper also claims that it is only through crowdfunding that such a diverse range of projects can meet the development funding needs.

The SC advised investors to exercise due diligence and to be cautious of the risks of participating in any investment schemes, in particular schemes involving cryptocurrencies and digital tokens. © New Straits Times Press (M) Bhd