Topic: [2017-11-11] Germany’s Top Financial Regulator Warns Against ICO Risks (Read 4861 times)
November 13, 2017, 11:51:11 AM
ICOs are a gamble. Worse than the state lotteries. I dropped 5.1 ETH on UnikoinGold for 4,250UKG after Mark Cuban invested millions. It still dropped 50% after hitting exchanges...🤷🏽♂️
November 12, 2017, 01:09:23 PM
In principle, recently all have started to talk and discuss the topic of risk for investors in the conduct of the ICO. Such a problem is really urgent and requires an urgent solution. It is necessary either state regulation of the ICO, or independent control by the community.
November 11, 2017, 12:58:58 AM
ICOs are simply scam money collection schemes, of course it will be regulated or banned.
November 11, 2017, 12:45:39 AM
Now there is an urgent need for government regulation of the ICO, so as to reduce the risks and the likelihood of fraud in this process. Go-shock should check the team for issuing initial coins for the existence of such risks and, if necessary, draw their conclusions and prohibit them, motivating precisely the likelihood of greater risks for investors, rather than other motives. Here it is necessary to find a balance so that the regulators themselves can not abuse their right.
November 10, 2017, 11:58:03 PM
Germany's top financial regulator, the Federal Financial Supervisory Authority (BaFin) has issued a warning to investors bout the risk of investing in initial coin offerings (ICOs). This move makes BaFin the latest market watchdog to issue a warning on ICOs.
In its statement, BaFin warned investors about the various risks involved in ICOs and token sales.
Among the risks is the possibility of losing one’s entire investment. The agency also warned that the ICO as a funding model can “attract fraudsters” who may misrepresent their projects to prospective investors.
Part of the statement reads:
"Due to the lack of legal requirements and transparency rules, the consumer is left on their own when it comes to verifying the identity, reputability and credit standing of the token provider and understanding and assessing the investment on offer. It can also not be guaranteed that personal data will be protected in accordance with German standards."
BaFin’s other plans
Although BaFin did not impose any new requirements or guidelines for ICO organizers in its latest statement, it announced that it will release a more comprehensive guide for investors on November 15.
The regulator also warned that before they decide to take part in an ICO, consumers should make sure that they fully understood the benefits, as well as the risks of the investment or project. It further added that taking the necessary measures against ICOs may result in possible losses for investors in token sales that prove to be fraudulent in nature.
"Before any consumer decides to participate in an ICO, they should make certain that they have fully understood the benefits and risks of the project or investment.”
Source: https://cointelegraph.com/news/germanys-top-financial-regulator-warns-against-initial-coin-offering-ico-risks
In its statement, BaFin warned investors about the various risks involved in ICOs and token sales.
Among the risks is the possibility of losing one’s entire investment. The agency also warned that the ICO as a funding model can “attract fraudsters” who may misrepresent their projects to prospective investors.
Part of the statement reads:
"Due to the lack of legal requirements and transparency rules, the consumer is left on their own when it comes to verifying the identity, reputability and credit standing of the token provider and understanding and assessing the investment on offer. It can also not be guaranteed that personal data will be protected in accordance with German standards."
BaFin’s other plans
Although BaFin did not impose any new requirements or guidelines for ICO organizers in its latest statement, it announced that it will release a more comprehensive guide for investors on November 15.
The regulator also warned that before they decide to take part in an ICO, consumers should make sure that they fully understood the benefits, as well as the risks of the investment or project. It further added that taking the necessary measures against ICOs may result in possible losses for investors in token sales that prove to be fraudulent in nature.
"Before any consumer decides to participate in an ICO, they should make certain that they have fully understood the benefits and risks of the project or investment.”
Source: https://cointelegraph.com/news/germanys-top-financial-regulator-warns-against-initial-coin-offering-ico-risks
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