Japanese Regulator Warns of ICO Risks As Bitcoin Tops $6,000
Japan is the latest country to express concern over initial coin offerings and cryptocurrency, with its regulatory body the Financial Services Agency, or FSA, sending out a statement on the risks of ICOs to potential investors.
The statement, which was released on Friday, October 27th, warned that investors should be aware that “the price of a token may decline or become worthless suddenly,” after or during an Initial Coin Offering.
While the agency did not outright ban or otherwise prevent investors from participating in ICOs, the FSA also named a lack of regulatory oversight and the growing number of ICO scams as reasons to be wary of the fundraising method.
The FSA’s statement is the latest in a round of global ICO warnings, with countries like the United States, Canada, and the United Kingdom all issuing their own statements.
Meanwhile, digital currency bitcoin has continued its rise, topping $6,000 in price per bitcoin for another all-time high. The currency, along with ether (Ethereum’s token) is commonly used in ICOs.
Read more at Coindesk and FinanceMagnates.
