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Cryptocurrencies

Germany's finance regulator issues warning on ICOs

Friday 10 November 2017 | 10:32 AM CET

The Federal Financial Supervisory Authority (BaFin), Germany’s top finance regulator, has issued an investor warning on initial coin offerings (ICOs).

The German finance regulator said today that investors should be wary of the risks involved in token sales, including “the possibility of losing their investment completely.” Furthermore, the agency added that this funding model is “attracting fraudsters” who may misrepresent their efforts to prospective backers. According to CoinDesk, a more comprehensive guide for investors will be released on November 15, according to authority’s announcement.

Though BaFin didn’t indicate that it might seek enforcement action against any ICO organizers, the agency suggested generally that “authorities taking necessary measures” could result in potential losses for investors in token sales that prove to be fraudulent in nature, the online publication continues.

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