While many people consider initial coin offerings to be high-risk investments, the rewards are often worth it for investors throughout the world.
However, ICOs remain an unregulated market, and recently, Japan’s Financial Services Agency (FSA) warned of the risks posed by these crowdfunding campaigns.
The agency commented that the potential for fraud as well as price volatility are danger factors faced by investors in ICOs, but also mentioned that they could be regulated under either the country’s Payment Services Act or the Financial Instruments and Exchange Act.
In a recent press statement, the FSA noted:
You should have a deal at your own risk only after understanding enough the risks as above and the content of an ICO project if you buy a token and you should also pay careful attention to suspicious solicitation on ICOs.
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