Germany’s BaFin chairman Felix Hufeld is not convinced ICOs will become a mainstream phenomenon.
Germany’s financial regulator wants to see an international effort to regulate Initial Coin Offerings (ICO), despite remaining uncertain whether they would ever become more than a “niche issue,” German business outlet Handelsblatt reported Sunday, Oct. 28.
In an interview with the publication, Felix Hufeld, chairman of Federal Financial Supervisory Authority (BaFin), said German regulatory sources remained hawkish on ICOs as a financial instrument.
“The number (of ICOs) and the volume (of money) per ICO are both getting higher. Investors have mostly minimal rights,” he said, adding:
“I can thus only recommend private investors keep away from such things.”
Regulators worldwide have increased scrutiny on ICO tokens this year as investors in many schemes from 2017 see funds evaporate in the ongoing cryptocurrency bear market.
Germany has traditionally taken a global stance on cryptocurrency from a regulatory perspective, with Hufeld explaining regulatory moves should preempt a more mainstream push in future.
“Up to now we’re still talking about a niche issue,” he said, “whether or not (ICOs) become a standard part of the financial economy remains to be seen.”
He added that international standards were also “desirable” in the longer term, and that discussions to that effect were underway in “multiple international forums.”
In June, BaFin signaled its future regulatory path regarding cryptocurrency would focus not on individual investors’ financial security, but the security of the broader financial markets.
Source: , CoinTelegraph
Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.