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.”
“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.”
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.