Last Friday the British financial regulator has announced that it will conduct a further analysis of the applicability of national laws to the ICO to determine the need for “further regulatory action”.
In particular the statement of the office of financial regulation (FCA) said that it intends to conduct a “deeper analysis” of events, collecting more evidence and information.
This analysis will help to determine whether further regulatory action in this area, in addition to warning consumers about possible risks.
For the first time the FCA has issued a warning about the risks associated with the ICO in September of this year. In that statement, the regulator drew attention to the fact that ICO is not regulated and therefore certain protections available to other assets, do not apply to this market. Other possible risks include the volatility of cryptocurrencies and the potential for fraud.
The FCA also said that the ICO projects need to operate with maximum benefit to the consumer.