The financial authorities of the Netherlands noted that Initial Coin Offerings are surrounded by extreme rush and call investors to be vigilant, although they acknowledge that regulation of this market is not their responsibility if tokens are not classified as securities.
“Although the AFM sees the possibilities of the blockchain technology to be used in financial services, it points high risks of ICOs amidst the current hype. The high risk of scams and investment loss combined with the hype around ICOs currently is a dangerous cocktail,” says Merel van Vroonhoven, chairman of the AFM.
The statement of the Dutch Financial Markets Authority (AFM) lists the main risks associated with ICOs. These risks are anonymity and cross-border character of blockchain technology, which allow building an advanced form of traditional Ponzi scheme…
Read Full: Regulator of Netherlands warns investors of ICO-related risks