UK Watchdog Warns Against ICO Investments

UK Watchdog Warns Against ICO Investments

The UK`s Financial Conduct Authority (FCA) has issues a public consumer warning about the risks of ICOs or initial coin offerings.The FCA warned i

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The UK`s Financial Conduct Authority (FCA) has issues a public consumer warning about the risks of ICOs or initial coin offerings.

The FCA warned in a statement that “ICOs are very high-risk, speculative investments”, adding that consumers should be prepared to lose their entire stake.

“[D]igital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorized by the FCA to be able to deliver their services.”, as the FCA said.

This warning follows other similar positions taken from the Malaysia`s Securities Commission, the Monetary Authority of Singapore, the country`s central bank, the Securities and Futures Commission of Hong Kong, the Bank of Russia, the Russian Federation`s central bank, the US Securities and Exchange Commission and the People`s Bank of China, China`s central bank.

Last week, China`s central bank has announced an immediate blanket ban on all initial coin offering (ICO) funding, as cryptocoinnews.com reported at the time.

“As of the date of this announcement, all types of token issuance financing activities shall cease immediately. The organizations and individuals who have completed the financing of tokens should make arrangements for repatriation and so on, reasonably protect the interests and properly handle the risks.”, according to a roughly translated excerpt from the announcement that was quoted by cryptocoinnews.com.

The National Internet Finance Association of China (NIFA) has also reportedly issued a warning to its members about the dangers of initial coin offerings (ICOs).

“China Internet Finance Association members should take the initiative to strengthen self-discipline, to resist illegal financial behavior.”m accirding to the association as quoted by cryptocoinnews.com.

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