Japanese Financial Watchdog Issues Warning over ICO Risks

Japanese Financial Watchdog Issues Warning over ICO Risks

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 […]