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ESMA Comments on ICOs Warning Investors but Draws No Bright Line Guidance on Security Question

Crowdfund Insider

17 Nov 2017

Joshua Ashley Klayman addressed the European Securities and Markets Authority’s statements on initial coin offerings in the Crowdfund Insider article “ESMA Comments on ICOs Warning Investors but Draws No Bright Line Guidance on Security Question.”

“Earlier this week, the European Securities and Markets Authority (ESMA) released two Statements on Initial Coin Offerings (ICOs), one aimed at warning investors of token sale-related risks and one for companies involved in token sales.  ESMA struck a neutral tone, describing ICOs as ‘an innovative way of raising money from the public,’ while also noting that there is a ‘high risk of losing all of [investors’] invested capital as ICOs are very risky and highly speculative investments.’  Similar to other jurisdictions’ guidance, ESMA cautioned about potential fraud and money laundering concerns.”

Read the full article.

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