British Regulator Issues Modest Caution on Very High Risk ICOs – Bitcoints

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Published on September 13th, 2017 | by bitcoin

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British Regulator Issues Modest Caution on Very High Risk ICOs

Certain businesses may be “conducting regulated activities” as part of their ICO, but this would be decided on a “case by case basis.”
“Many ICOs will fall outside the regulated space,” a bulletin on the Authority’s website reads.
Hong Kong has also followed suit in this respect, while markets continue to feel the pressure of China’s all-out ban on ICOs enacted last week.
Six risks
In the West, Canada most recently caused a stir when a planned $125 mln ICO from social media platform Kik, opted to exclude its citizens due to legal uncertainties.
In turn, the FCA highlighted six “risks” which served to make ICOs “very high-risk, speculative investments.”
“You are extremely unlikely to have access to UK regulatory protections like the Financial Services Compensation Scheme or the Financial Ombudsman Service,” the bulletin explained about the level of investor protection offered in the UK for victims of fraudulent schemes.
The Authority also encouraged consumers to report “scam” ICOs directly.

Source: Cointelegraph.com



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