Trinidad And Tobago Warns On Initial Coin Offerings
by Mike Godfrey, Lowtax.net, Washington
28 February, 2018
Trinidad and Tobago's Ministry of Finance has issued a warning to members of the public considering investing in digital currencies.
The warning notes the proliferation of digital currencies internationally, as well as the proposed launch of a BarterCoin Exchange and an initial coin offering in Trinidad and Tobago.
The Ministry says it is not associated with, nor has it endorsed a BarterCoin Exchange or initial coin offering, and that the Securities and Exchange Commission, which regulates investments in the territory, has also not approved any initial coin offering.
The Commission has separately drawn investors attention to the considerable risks associated with unregulated and speculative investments such as digital currencies, including the heightened potential for fraud, and cross-border distribution risks that can arise where the digital currency issuer is outside of the investor's jurisdiction, which may make recovery of an investment difficult.
The Commission has also warned that "information asymmetries" may mean investors may not be able to understand the risks and costs arising from their investment, and that liquidity risks arising from unregulated cryptocurrency exchanges may leave investors vulnerable to dramatic price changes and unable to exit their holdings.
The message from both the Ministry and Commission is that the public should exercise care when investing in digital currencies, and should seek the advice of regulatory bodies, such as the Commission and/or the Central Bank of Trinidad and Tobago, before making any investment.
See all of today's news