According to many financial services, the ordinary retail investors and the businesspersons are asked to follow certain rules while investing into highly speculative and risky Initial Coin offerings (ICO). The warning issued to the investors is to protect investor’s funds, instable pricing and having a higher risk of loss of money or business.
Awareness Process Regarding ICOs
The regulator warning is a part of awareness process where the ICOs have used for duplicitous processes. Similar to digital currency Bitcoins, ICOs also make use of the advanced technology such as blockchain, which is mainly used by investors in the exchange of cryptocurrency in the form of digital coins or digital tokens and are specifically linked with an ongoing project.
The regulator warnings given across the financial services raises concerns in a number of countries like US, UK, Canada, Germany, and China, who have banned the use of ICOs completely. Even in the countries like UK, the virtual currency Bitcoin was completely avoided to reduce the illegal activities like money laundering and tax evasion. The hackers who have destroyed national health services and damaged it severely a few months ago have demanded the ransom in Bitcoins. According to the European Union, new laws are being set-up to minimize the use of online Bitcoin transactions. It is required to keep a control on increasing dubious transactions and suspicious business dealings.
The value of Bitcoin keeps on increasing, and it has raised several questions regarding the unstable market, increasing prices. The concerns are expressed regarding cryptocurrency which makes the investors start over-estimating the Bitcoin prices.
Importance of Cryptocurrencies in Future
According to the statement received from International Monetary Fund (IMF), the importance of cryptocurrencies will be useful like Bitcoin in the near future while dealing with financial systems and it could become virtual currency. It can be the easier and safer in form when compared to the paper bills which are mainly used in some of the countries as an unsteady national currency.
According to the legal amendments, the jurisdiction was introduced to regulate virtual currencies. It can help in reducing the chances of miscellaneous financial operations. The use of advanced technologies such as blockchain and fintech, which innovative systems and can efficiently control the financial transactions carried using ICOs by the investors. It helps in keeping the financial process sound and strong.
Follow Rules & Regulations Watchfully
The European Securities and Markets Authority (ESMA) has expressed its concern and has warned the investors about the possible risks. It has also issued a notice to the concern parties regarding the new set of rules and regulations while dealing with ICOs. The increase in the cash flow or the sale of tokens has certainly boosted the financial prospects by overcoming the uncertain actions.
According to the Wolf of Wall Street, ICOs are the scam and are needed to be dealt with watchful rules, which not only regulate investment activities but also keeps a track of money laundering operations. The regulators of many countries have come together to discuss several doubts regarding the ICOs, which has collected billions of dollars even today.
Buy and Sell Cryptocurrencies – Start Trading
>> Open Account on Recommended Website <<