Saudi regulator warns against investing in cryptocurrencies

Saudi Arabia’s regulator, the Capital Market Authority, cautioned against investment in initial coin offerings (ICOs) citing their high intrinsic risk, potential loss of capital and fraud.

The risks involved in investing in cryptocurrencies include capital loss, fraud, market risks resulting from high volatility and lack of clarity on valuation, Saudi Press Agency cited the regulator as saying.

The warning comes amid wide-spread web and social media advertisements, encouraging investments in cryptocurrencies.