The Jersey Financial Services Commission joined the likes of Hong Kong and Singaporean regulators in issuing a warning on initial coin offerings.
The Jersey Financial Services Commission (JFSC) said it recognises the innovative potential of distributed ledger, blockchain technology and fintech more generally and supports efforts to responsibly innovate in fintech in Jersey.
However it is concerned about retail investors participating in initial coin offerings (ICOs), saying it is aware of some instances of ICOs being used for fraudulent purposes and issued a statement highlighting this on its website.
Chinese Action on Frauds
The warning comes on the back of similar warnings from several Asian regulators. In September The People's Bank of China announced an immediate ban on initial coin offerings and declared them illegal and a threat to financial stability.
In a circular published on its website, the People’s Bank of China (PBOC) said fundraising schemes of this kind had been defined as illegal, and that 90 percent of the initial coin offerings (ICOs) launched in the country were found to have been fraudulent.
