Last Tuesday, UK market regulator Financial Conduct Authority (FCA), issued a warning against initial coin offerings, calling it a high-risk and speculative form of investment.
The FCA added that only experienced investors confident in the quality of the ICO project should consider buying tokens, and even then they should go in prepared to lose their entire stake.
ICOs have raised around $1.7 billion in crypto token investments in this year alone. However, regulators are wary of its potential to be used for illegal activities such as money laundering. Aside from the FCA, a number of other regulators, including ones from Singapore and Hong Kong, have also issued warnings.