Bitcoin Electronic Crypto Currency Exchange Concept Illustration

The International Organization of Securities Commissions (IOSCO) issued a statement from its board on Thursday highlighting the “clear risks” associated with initial coin offering (ICO) transactions.

“ICOs are highly speculative investments in which investors are putting their entire invested capital at risk. While some operators are providing legitimate investment opportunities to fund projects or businesses, the increased targeting of ICOs to retail investors through online distribution channels by parties often located outside an investor’s home jurisdiction — which may not be subject to regulation or may be operating illegally in violation of existing laws — raises investor protection concerns,” IOSCO says in a news release.

IOSCO notes that there have also been frauds involving these investments. As a result, it calls on investors, “to be very careful in deciding whether to invest in ICOs.”

IOSCO issued a statement last year about the risks associated with ICOs. It has also set up a forum, the ICO Consultation Network, to facilitate discussion between regulators about their experiences and concerns in this area, including cross-border issues.

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