The Japanese Financial Services Agency (FSA) has issued a statement regarding initial coin offerings (ICOs). In addition to risk warnings, the agency detailed how two existing laws may apply to token sales.
FSA Warns of ICO Risks
Japan’s FSA published a statement on Friday, clarifying its position on ICOs. The agency first warned the public of two risks applicable to ICO investors.
The first risk concerns price volatility, which the agency cautioned, “the price of a token may decline or become worthless suddenly.” The second risk is “potential for fraud.” The FSA warned that goods and services outlined in ICOs’ whitepapers may not be realized, adding that: […]