USA Warns Against Crypto Investment Threats
January 30, 2018
Kansas Securities Commissioner John Wine has given warning note about investing in crypto and ICO. It says these investment types are not state insured.
Along with cryptocurrencies and ICO Wine alerted citizens to the risks of putting into crypto futures. He recommends the investors being cautious and avoid crypto traps.
“Investors should go beyond the headlines and hype to understand the risks associated with investments in cryptocurrencies, as well as cryptocurrency futures contracts and other financial products where these virtual currencies are linked in some way to the underlying investment”, Wine claimed.
What is more, Kansas Insurance Department notes that high return promising projects do not provide for any guarantees or exert pressure on investors and inherently are dangerous fraudulent schemes investors must keep out of.
The statement proves that the US government starts placing greater focus on cryptocurrencies and unregistered securities issuing disguised as token selling at both federal and regional levels.
A striking example for this is BitConnect case: the project has been charged by authorities of two states at once with issuing unregistered securities as tokens and was ordered to stop illegal activity. As a result BitConnect Coin rate has collapsed with the first class action suit filed against its administrators.