German Regulator Clarifies Obligations For ICO Operators Following Increased InterestFebruary 22, 2018 4:29 pm
After receiving “increased queries” about the legal status of obligations for Initial Coin Offerings (ICOs), Germany’s Federal Financial Supervisory Authority (BaFin) has issued a note to clarify, CoinTelegraph reported.
The note, a followup by BaFin on it’s warning to investors from November 2017, discusses the potential “risks” of ICOs, the report said.
Explaining further, CoinTelegraph said the update comes “against a background of increased enquiries to BaFin regarding the areas of securities and asset management” with potential ICO operators enquiring “whether the underlying tokens, coins or cryptocurrencies behind so-called ICOs are viewed as financial instruments within the area of securities supervision.”
Under Germany’s jurisdiction, the report said, ICO operators “are required to check exactly whether a regulated instrument, [such as] a financial instrument… or a security, is being dealt with, in order to fulfil potential legal requirements without any gaps.”
– WN.com, Jack Durschlag