IOSCO reminded investors to be wary of ICO risks

nBankruptcy Commentary: Last year, many countries’ financial regulators issued risk notices for hot ICOs. The possible fraud in such new financing activities is still the focus of regulators. Recently, IOSCO also issued a similar circular advising investors to be wary of the ICO’s risk. By 2018, the major countries will be for the ICO to implement what measures will also be one of the topics of great concern.n
nTranslation: Inan
IOSCO, a nationwide regulatory agency, released a circular on January 19 reminding investors to be wary of the risks in the ICO.n
The organization pointed out that this “highly speculative investment” is attracting the participation of retail investors from all over the world, as cryptocurrencies are freely manipulated across borders.n
There may be fraud in the sales of tokens, but they may not be in the jurisdiction of the investor’s country. Therefore, the group advises investors to be very cautious before participating in the ICO.n
This circular represents the latest effort by global financial regulators to actively monitor the progress of ICO activities.n
Last year, many countries took remarkable steps to regulate ICO. Both China and South Korea have formally banned such activities. The United States, Britain, Malaysia and the United States are also intensifying their review of tokens issuance and may regard them as securities.n
According to the IOSCO official website detailed instructions, at least 26 countries have the financial regulator for the risk of ICO issued a warning.n
Headquartered in Madrid, Spain, IOSCO is a member of the highest financial regulator in more than 100 countries around the world, including the U.S. Securities and Exchange Commission, the Financial Conduct Authority of the United Kingdom and the European Securities and Markets Authority.n

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