Dubai Financial Services Authority States It Does Not Regulate Initial Coin Offerings

The Dubai Financial Services Authority (DFSA) released a statement about cryptocurrency and Initial Coin Offerings, or "ICOs," joining regulatory agencies in Thailand, Malaysia, Canada, Hong Kong, and the UK.

The DFSA's statement highlighted the hazards posed by ICOs and cautioned that they "should be regarded as high-risk investments." Specifically, it noted that ICOs can be complex, diverse, and may have unique risks that are not well understood. The DFSA also noted that ICOs are sometimes made on a cross-border basis, increasing risks for potential token purchasers.

In contrast to other regulators who have indicated that ICOs may be subject to securities regulation, the DFSA emphasized that it does not currently oversee ICOs or "license firms in the Dubai International Financial Centre (DIFC) to undertake such activities."