GERMANY'S TOP FINANCIAL REGULATOR BAFIN WARNS OF ICO RISKS

The Federal Office for Financial Supervision (BaFin), Germany's supreme financial regulator, issued a warning to investors, Cointelegraph reports . In it, representatives of the institution went through the risks associated with investing in primary offers of tokens (ICO). Thus, BaFin became the last at the moment the market supervision authority that issued a warning about the sales of tokens.

Among the risks was the possibility of an absolute loss of investment. The agency also warned that the ICO financing model is capable of "attracting scammers" who can present their projects to potential investors in a false light.

Part of the document reads as follows:

"Due to the lack of legal requirements and transparency rules, consumers only have to rely on themselves when it comes to identifying, respecting, and credit rating of the token supplier, as well as evaluating the investment or supply. In addition, we can not guarantee that personal data will be protected in accordance with German standards. "

OTHER PLANS OF BAFIN
Although in this statement BaFin has not established any new requirements or instructions for the organizers of the ICO, the institution announced the forthcoming release of a more complete guide for investors. Hyde should leave on November 15.

The regulator warned consumers about participation in the ICO: such people are advised to make sure of the full understanding of the advantages and risks of investing in the project. They added that the adoption of the necessary measures against the ICO may entail possible losses for investors. However, this concerns only those sales that will prove to be fraudulent.

"Before any consumer decides to participate in the ICO, he should make sure that all the advantages and risks of the project or investment are fully understood."