Dubai Financial Regulator Issues Warning on ICOs

A financial services regulator in Dubai has issued a warning on initial coin offerings (ICOs).

In a new statement today, the Dubai Financial Services Authority (DFSA) became the latest markets regulator to urge caution to prospective investors, a list which include agencies from Russia, Canada and the US, among others.

One notable difference is that the DFSA said that it "does not currently regulate these types of product offerings" or give licenses to firms within the Dubai International Financial Centre – a special economic zone within Dubai that the DFSA oversees – that offer such products or services.

The agency said:

For now, it's unclear whether the DFSA will take additional steps to regulate any kind of related activity within the economic zone.

As it stands, its statements only focus on the risk to investors, and do not offer any insight into whether the agency believes ICO tokens may be securities, a finding which would put its guidance in line with other regulators internationally.

Image via Shutterstock