The Polish Financial Supervision Authority (KNF) is recently observing a sudden increase of Initial Token Offerings (ITOs) or Initial Coin Offerings (ICOs) which consists in obtaining funds in order to finance particular projects. As KNF stated numerous offers come from outside Poland or even the European Union. KNF informs in its statement that investing in tokens, as part of ICOs, is highly hazardous.
The authority indicated that realization of such ventures is done by means of new technologies. Entities realizing ICOs make use of the Internet and social media in order to gain funds. Famous persons (sport or show-business representatives) are more and more frequently engaged in promoting particular ICOs investment offers in order to make them more reliable. It should be underlined that activities concerning ICOs may potentially be subject to numerous legal requirements, including drawing up a prospectus and a public offer, establishing and managing alternative investment funds and investor protection, wrote the institution. However, each case should be assessed on an individual basis. Therefore, the KNF would like potential investors, as well as entities interested in offering such products, to pay attention to the specific and meaningful risks connected with ICOs and potential buyers should be especially aware of the possibility of losing all capital invested and the possible lack of legal protection.
The KNF’s statement is published on the Authority’s website.
