Dubai issues public ICO warning

A financial markets regulator in Dubai has issued a warning on initial coin offerings (ICOs), amongst a list of authorities including Russia, Canada, the US and others.

The Dubai Financial Services Authority (DFSA), the financial regulator of a purpose-built international financial free zone in Dubai, urged prospective investors to be cautious when it comes to ICOs.

According to the DFSA, it had not regulated nor licensed any entities in the financial zone.

Furthermore, potential investors are advised to practice due diligence as the risks associated with a token sale are not known yet.

The DFSA issued the warning despite the adoption of a Fintech-forward agenda that aims to encourage innovation in financial technologies in the region.

Regulators from Hong Kong and the United States warned that ICOs may be classified as securities, and would, hence, be subjected to regulations and securities laws.