Japanese financial regulator, the Financial Services Agency (FSA), has issued a statement warning investors of the risks associated with initial coin offerings (ICOs).
In the statement released Oct. 27, the FSA stressed the “high” risk factors of digital tokens issued as a way of raising funds from for investors. The regulator aired several concerns over the blockchain use case including price volatility, with the FSA saying “The price of a token may decline or become worthless suddenly.”
Further, the agency emphasized the potential for fraud in the nascent industry. “There are possibilities that the projects in the paper are not implemented, or the goods and services planned are not offered in reality,” the document states…
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