(Yicai Global) Sept. 13 -- Since China's  state bank, the People's Bank of China, banned initial coin offerings (ICOs) on Sept. 4, several platforms have said they may move their projects to foreign markets in order to continue token sales.

However, ICO regulators in foreign countries have responded in a less than welcoming manner, with the UK's Financial Conduct Authority (FCA) since issuing a warning against ICO activities and highlighting risks associated with digital currency trading.

ICOs are a risky and highly speculative investment activity and their associated regulatory boundaries will be decided case by case, the FCA said.

The authority listed six risks involved in initial coin offering investment, including a lack of FCA regulation, volatile prices, fraud, a lack of transparency, insufficient investor protections and the unverified nature of the ICO business model.

The regulator warned companies participating in ICOs to carefully consider if the fundraising conforms to regulatory requirements and whether the activities violate any laws.

The FCA also reminded investors that many projects are not covered by financial regulation, and they may report any ICO if they think it could be a scam.

In the US, the Securities and Exchange Commission reiterated the its stance on ICO activities at a national banking conference held by the American Institute of Certified Public Accountants.

"The federal securities laws apply to those who offer and sell securities in the US, regardless of whether the issuing entity is a traditional company or a decentralized autonomous organization, whether those securities are purchased using US dollars or virtual currencies, or whether they are distributed in certificated form or through distributed ledger technology," said Wesley Bricker, chief accountant at the Securities and Exchange Commission.

Financial regulators in many major economies, including China, the US, the UK, Singapore, Hong Kong and Japan, have made clear their stance on the ICO market. Overall, risks involved in coin sales include fraud, lack of information transparency and money laundering. Foreign regulators will also tighten up regulation over ICO projects and participating businesses.