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![]() The European Securities and Markets Authority (ESMA) issued two separate statements today. ![]() 13.Nov.17 2:14 PM By Daria Zaytseva Photo Toinnov.com |
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They set out what it perceives as the risks initial coin offerings (ICOs) pose for investors and startups, respectively.
Struck by a worried tone on the emerging market, ESMA warned investors that using custom cryptocurrencies to raise funds is associated with a "high risk" of capital loss. Adding to that, the authorities warned that ICOs could go beyond the laws and regulations of the EU, which in turn does not benefit investors. This news, in particular, follows other recent ICO warnings, including a statement by the Japanese FSA to investors about the risks of the ICO, and the other from the Federal Financial Supervisory Authority of Germany.
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