FINRA: careful with crypto assets
The Financial Industry Regulatory Authority, previously known as the National Association of Securities Dealers, self-regulated organization founded by the decision of Congress in 1939, has issued a warning on trade risks when it comes to cryptocurrency-related assets.
To be more precise, this warning contains recommendations to search as many data as possible on the potential investee, and be especially careful in case the statements of a project are not backed by any credible reports.
“Especially in today’s 'hot' cryptocurrency environment, it’s easy for companies or their promoters to make glorified claims about new products, services and other cryptocurrency-related connections. And, even when legitimate companies flock to a hot, new sector, fraudsters almost always follow suit, exploiting the news to launch their latest frauds du jour”, the statement tells.
Previously, the United States Securities and Exchange Commission which regulates initial coin offerings has published several similar recommendations for traders and urged the companies to tell about their business honestly and in detail, while also not ignoring the ‘tokens equals securities’ principle recently cemented in the American legislation.
Meanwhile in Russia, the local association researching cryptocurrencies and blockchain has prepared a report (article in Russian) where among other conclusions and stats there is a claim that only 3% of Russian ICO founders introduced the project exactly in the form it was described in promotional materials.
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