UAE authorities urge caution when investing in crypto ICOs
The UAE's Securities and Commodities Authority (SCA) says that investors involved in initial coin offerings are doing so at their own risk
The UAE's Securities and Commodities Authority (SCA) is warning investors to be cautious about digital, token-based fundraising activities or fundraising schemes, including initial coin offerings (ICOs) and token presales or crowd sales.
In a statement, the SCA said that ICO terms and features are case specific, as is the nature of rights and interests acquired by investors. As such, the SCA notes that ICOs are highly speculative, with prices highly volatile.
The SCA is urging that investors be aware of the risks associated with investments in ICOs, and has reiterated that the authority does not regulate or supervise any ICO, and that investments in ICOs are not offered any legal or regulatory protection.
Any investors involved in ICOs, the SCA statement added, are doing so at their own risk.
Additionally, the SCA has called upon digital token issuers, intermediaries advising on or facilitating digital token offerings and trading platforms to seek legal and regulatory advice to ensure compliance with applicable laws and regulations.
The SCA added that the body has recently formed a fintech team, which has been assigned the task of facilitating the implementation of fintech initiatives and keeping abreast of the latest developments in the sector.
Source: Arabian Business