LONDON (Reuters) - Intitial coin offerings (ICO), the practice of creating and selling digital currencies to finance start-up projects, are “very high risk” and speculative, Britain’s Financial Conduct Authority said on Tuesday.
ICOs are a digital form of raising funds from the public using a virtual currency, with issuers accepting Bitcoin or Ether in exchange for a proprietary coin or token that is related to a specific company or project.
“ICOs are very high-risk, speculative investments,” the FCA said in a consumer warning.
“You should be conscious of the risks involved and fully research the specific project if you are thinking about buying digital tokens.”
Reporting by Huw Jones, editing by Louise Heavens