Dubai Financial Regulator Issues Warning on ICOs

A financial services regulator in Dubai has issued a warning on initial coin offerings (ICOs) to investors.

The Dubai Financial Services Authority (DFSA), in a new statement, became the latest markets regulator to urge caution to prospective investors, a list which include agencies from Russia, Canada and the US, among others.

One notable difference is that the DFSA said that it “does not currently regulate these types of product offerings” or give licenses to firms within the Dubai International Financial Centre – a special economic zone within Dubai that the DFSA oversees – that offer such products or services.

The agency said:

“The DFSA wishes to highlight that these types of product offerings, and the systems and technology that support them, are complex. They have their own unique risks, which may not be easy to identify or understand; such risks may increase where offerings are made on a cross-border basis. These offerings should be regarded as high-risk investments.”

For now, it’s unclear whether the DFSA will take additional steps to regulate any kind of related activity within the economic zone.

As it stands, its statement only focuses on the risk to investors and does not offer any insight into whether the agency considers some ICO-derived tokens to constitute securities, as other regulators have done.

Image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

Welcome to Bitcoin Country: Silk Road and the Lost Threads of Agorism Welcome to Bitcoin Country: Silk Road and the Lost Threads of Agorism
Better in Byzantium? Ethereum Takes Baby Steps Toward a Privacy Boost Better in Byzantium? Ethereum Takes Baby Steps Toward a Privacy Boost
Money Manager Josh Brown: 'ICOs Are Where The Frauds Will Take Place' Money Manager Josh Brown: 'ICOs Are Where The Frauds Will Take Place'
EU Budget Amendments Call For Millions in Blockchain Funding EU Budget Amendments Call For Millions in Blockchain Funding
ICO Creator And Coinme Team Up To Spread Bitcoin ATMs ICO Creator And Coinme Team Up To Spread Bitcoin ATMs
China shutting down Bitcoin exchanges China shutting down Bitcoin exchanges
Hackers Lock Out iPhone And Mac Users, Demand Bitcoin Ransom: Here's How To Stay Safe Hackers Lock Out iPhone And Mac Users, Demand Bitcoin Ransom: Here's How To Stay Safe
BRIEF-Evolve Funds Group says it has filed a preliminary prospectus with Canadian securities regulators for Evolve Bitcoin ETF BRIEF-Evolve Funds Group says it has filed a preliminary prospectus with Canadian securities regulators for Evolve Bitcoin ETF
© 2017 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.