The Dubai Financial Services Authority Offers Investors Guidance On Cryptocurrencies
On September 13, 2017, the Dubai Financial Services Authority (DFSA) issued a statement to investors on cryptocurrencies, wherein the agency made it clear that it does not currently regulate token offering-based crowdfunding activities.
In the official statement, the DFSA declared that a degree of complexity surrounds both the systems and the technology that underlies token offering-based crowdfunding. As per the statement, "These offerings should be regarded as high-risk investments." DFSA encourages potential investors to make use of a public register from which a list of regulated firms and authorized parties can be referred to.
In no uncertain terms, the DFSA's statement relayed its current stance on regulation.
"The DFSA would like to make it clear that it does not currently regulate these types of product offerings or license firms in the Dubai International Financial Centre (DIFC) to undertake such activities. Accordingly, before engaging with any persons promoting such offerings in the DIFC, or making any financial contribution toward such offerings, the DFSA urges potential investors to exercise caution and undertake due diligence to understand the risks involved."
The DFSA's statement also offers guidance for investors on how to avoid being scammed. It reminds investors that alerts are issued via the website and to stay appraised of them.
As a market that has experienced exponential growth in recent times, the "high risk" token offering-based investments may pay off with equally large rewards. If followed, the DFSA's general advice should allow for confident navigation through channels of token offering investment.