Britain's financial watchdog has warned investors they risk losing all of their money in ICOs. The Financial Conduct Authority (FCA) said it was concerned about the risks posed by cryptocurrencies and that regulators should be looking at how to regulate them. The warning comes after the Chinese government acted to outlaw ICOs altogether earlier this month, in a move which may be followed by the banning of digital currency exchanges. Risks highlighted by the FCA include lack of regulation, price volatility and potential fraud.
Britain's financial watchdog has warned investors they risk losing all of their money in ICOs. The Financial Conduct Authority (FCA) issued a statement on Tuesday saying people should only invest in digital coin sales if they are experienced investors, are confident in the quality of the project, and are prepared to lose their entire stake. The warning comes after the Chinese government acted to outlaw ICOs altogether earlier this month, in a move which may be followed by the banning of digital currency exchanges. Risks highlighted by the FCA include lack of regulation, price volatility and potential fraud.