The organization includes in its membership the world’s securities regulators, issued a notice warning investors about the risks associated with the initial offerings of coins (ICO).
The international organization of securities commissions (IOSCO) has warned that, because the transactions using the cryptocurrency can freely take place without spatial restrictions, these “highly speculative investment” and attract many retail investors from around the world.
If any ICO will be fraudulent, it is possible that it will be registered outside the jurisdiction of an investor. Thus, the organization advises investors to be “very careful” when investing in the ICO.
Financial regulators from around the world actively monitor the development of individual projects for the sale of tokens or activities of the ICO in General. Warning IOSCO only one of the many measures taken by regulators to combat fraud and speculation in the field of ICO for the last time.
Over the past year several countries have taken tangible steps to regulate cryptocurrency market. So, in China and South Korea officially banned such activity. USA, UK, Malaysia and other countries also strengthen the control over the release of the tokens that can be defined as securities.
According to information on the official website of IOSCO, regulators in at least 26 countries have issued warnings about the risks of investments in ICO.
The composition of the IOSCO, which includes representatives of major financial Supervisory agencies from more than 100 countries, including the securities Commission of the United States, the financial Supervisory authority of UK and European securities and markets authority.