Slovenia Board Warns on Crypto, ICO Risks

Announcements, ICO News, Regulation | October 13, 2017 By:

The Financial Stability Board (FSB) of Slovenia has issued a warning on digital currencies and initial coin offerings (ICO). The move follows similar warnings issued by global financial regulators, which include agencies from China, Singapore, Canada, Malaysia and the US, among others.

The FSB is a macro-prudential authority that comprises representatives from supervisory authorities, such as the Bank of Slovenia, the Insurance Supervision Agency and the Securities Market Agency, as well as the Ministry of Finance.

Slovenia’s financial watchdog has noted the interest of the public in digital currencies, saying that of late it has increased “very much”, particularly as an investment opportunity. The board stated that popular cryptocurrencies such as bitcoin are not issued or managed by the central bank or any other sovereign authority in the member country of the European Union.

“Investors in virtual currencies … have to take into consideration whether risks are in line with their personal preferences and investment goals,” the board said in a statement.

The FSB is also taking a similar stance to ICOs. The statement said that ICOs are also not regulated and controlled, and added that investors in ICOs should invest “in the amount that would not leave them too exposed.”