Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: CryptoGirl on November 10, 2017, 11:30:56 AM
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The Federal Financial Supervisory Authority (BaFin) said that investors should be wary of the "numerous risks" involved in token sales, including "the possibility of losing their investment completely." The agency added that the funding model – through which blockchain-based tokens can be sold and distributed in an effort to bootstrap a new network – is "attracting fraudsters" who may misrepresent their efforts to prospective backers.
"Due to the lack of legal requirements and transparency rules, the consumer is left on their own when it comes to verifying the identity, reputability and credit standing of the token provider and understanding and assessing the investment on offer. It can also not be guaranteed that personal data will be protected in accordance with German standards."
https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Meldung/2017/meldung_171109_ICOs_en.html