Financial Conduct Authority of the UK: ICO investors are not protected
Financial Conduct Authority (FCA) of the UK has published a warning about ICO unsafety on its official website.
According to the regulatory, ICO is an uncontrolled speculative phenomenon involving a lot of risks for investors. Besides, FCA experts note that ICO participants are not protected and can lose all their funds forever in case of fraud.
As reported by FCA representatives, tokens released by companies conducting crowdsales are highly volatile. Moreover, money collected in the course of ICO is hardly ever used directly, so these investments cannot be described as reliable.
FCA specialists encourage all investors to inform about all detected fraud incidents as well as learn the document drawn by the organization concerning blockchain technology, its operation principles, benefits, risks, and legislative framework.
FCA experts also note that similar warnings have already been published in Russia, China, the U. S., Hong Kong, Malaysia, and Singapore.