The International Organization of Securities Commissions (IOSCO) describes itself as the leading international policy forum for securities regulators, as being recognized as the global standard setter for securities regulation and as having a membership that regulates more than 95% of the world’s securities markets in more than 115 jurisdictions. It issued a media release today in which it warned that ICOs are highly speculative investments in which investors are putting their entire invested capital at risk. IOSCO stated:
While some operators are providing legitimate investment opportunities to fund projects or businesses, the increased targeting of ICOs to retail investors through online distribution channels by parties often located outside an investor’s home jurisdiction — which may not be subject to regulation or may be operating illegally in violation of existing laws — raises investor protection concerns. There have also been instances of fraud, and as a result, investors are reminded to be very careful in deciding whether to invest in ICOs.
It also included a link to the communications of the warnings issued by a number of the member countries, including the U.S.