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. One ought only to invest in an ICO if they are an "experienced investor, confident in the quality of the ICO project itself (e.g. business plan, technology, people involved) and prepared to lose [their] entire stake," the FCA said. 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) 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.