Yet more regulators are expressing concern about the dangers of cryptocurrency trading and ICOs. On January 4th, the North American Securities Administrators Association (NASAA) issued their own warning, addressed to so-called \'Main Street\' investors, i.e. the general public, as opposed to Wall Street financial institutions. This statement was immediately endorsed by America\'s SEC (Securities and Exchange Commission).

NASAA\'s statement cautioned smaller firms and private individuals against making uninformed investments, with the Association\'s President telling them to \"go beyond the headlines and hype.\" With the fears of a cryptocurrency bubble riding an extremely volatile market, people need to be sure they understand the underlying risks, if they are tempted to invest in digital currencies and financial derivative products like futures.

The warning stated that 94% of NASAA-surveyed regulators believe cryptocurrencies have a \"high risk of fraud,\" and concluded by listing five indicators of potential fraudulent activity for crypto investors to look out for. Red flag indicators include unlicensed sellers, pressure to buy quickly and \"guaranteed\" high returns, which were a feature of many 2017 ICOs.

As the market expands and gathers more public attention, regulators are increasingly likely to move towards instituting some protection. The endorsement of NASAA\'s statement by the SEC demonstrates how much regulatory focus is being concentrated on the problem, especially in the United States.