The UAE’s Securities and Commodities Authority (SCA) has warned the investors to be cautious about digital, toke-based fundraising activities or fundraising schemes, including initial coin offerings (ICOs) and token presales or crowd sales.
In a statement, the SCA mentioned that ICO terms and features are case specific, as is the nature of rights and interests acquired by investors. Likewise, the SCA notes that ICOs are highly speculative, with prices highly volatile.
The SCA is insiting that investors be aware of the risks related to investments in ICOs, and has reiterated that the authority does not regulate or supervise any ICO, and that investments in ICOs are not given any legal or regulatory protection.
The statement also stated that any investors involved in ICOs are doing things at their own risk.
Also, the SCA has called upon digital token issuers, intermediaries advising on or facilitating digital token offerings and trading platforms to acquire 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.
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