IOSCO warns investors about the risks associated with the ICO

According to IOSCO, the international organization that brings together regulatory authorities for securities projects for the initial placement of tokens (ICO), are extremely risky and highly speculative investment.

«There are clear risks associated with these proposals. ICO is a very speculative investment in which investors put the whole invested capital at risk», — reads the statement of the IOSCO.

The organization includes regulators from 115 countries that represent 95% of the world market of securities. IOSCO is headed by Ashley elder (Ashley Alder), Director-General of the Commission on securities and futures of Hong Kong (SFCA). Its membership also includes representatives from the 34 regulatory agencies, most of which, including from the US, UK, Germany, the Netherlands and Sweden, also have issued warnings about the risks associated with the ICO.

Two countries participating in the IOSCO – China and South Korea, have taken more drastic measures – this method of attracting investment to their territories completely prohibited.

Organization of regulators of securities urges investors to exercise caution when making decisions about investing in such startups, and recalls the cases of open fraud in the conduct of the ICO.

Attracting investment through an initial range of coins gained popularity just last year. By the autumn of ICO projects have raised more than $ 3 billion, while for the entire year of 2016, this figure did not exceed $100 million.

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