more ICO warnings as EU lssues two regulatory statements

European union regulators have issued two further warnings on ICOs directed at both investors and participating businesses.

Released monday the european sucurities and markets authority ESMA followed multiple jurisdictions in raising concerns that ICOs may not conform to regulatory norms.

ESMA has observed rapid growth in ICOs globally and in europe and is concerned that investors may be unaware of the high risks that they are taking when investing in ICOs a summary of the reports states.

Additionally ESMA is concerned that firms involved in ICOs may conduct their activities with out complying with relevant applicable EU legislation.

The concerns come as the ICO industry undergoes major changes . a far cry from the explosive growth seen just months previously pressure from lawmakers has appeared to engender a slowdown in the number of token sales and amounts raised.

A shift to providing legislation compliant exposure to cryptocurrency meanwhile is coming to the fore with global FX market CME group announcing its bitcoin futures trading would likely go live by the middle of nest month.

Correspondingly ESMA takes the opportunity to remind firms involved in ICOs of their required adherence two four specific EU directives on anti money laundering AML .

It is the duty of the firms themselves to cinsider the regulatory framework seeking the necessary permissions and meeting the applicable requirements it added.

R egulators in countries including canada and the uk have voiced similar worries about the need for securities compliance in recent months while chinese exchange BTCCs CEO bobby lee has said he considers it unlikely china would reverse its ban on the practice in the near future.