FINRA: SAFT-concept does not guarantee safety for investors

Verified
3 months ago
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The Financial Industry Regulatory Authority (FINRA) published a warning for potential investors in ICO projects. According to the document, the SAFT concept (Simple Agreements for Future Tokens) utilized by companies during the initial coin offerings does not guarantee approval by regulators and absolute safety for investors.

FINRA noted that often with the SAFT concept, the issuer of coins advertises them as security tokens that comply with federal securities laws, but in due course “transforms” them into utility tokens operating outside of the jurisdiction.