Australian securities commission acts against five ICOs

23 Sep, 2018
by David Robb
Australian securities commission acts against five ICOs

Australia's Securities and Investments Commission (ASIC) has recently stepped up its regulation of ICOs. According to a recent statement, 5 separate schemes have been dealt with since April.

The five ICOs were all put on hold, due to their fundraising from retail investors without providing the appropriate level of investor protections.

"If you raise money from the public, you have important legal obligations", said ASIC Commissioner John Price. "It is the legal substance of your offer - not what it is called - that matters. You should not simply assume that using an ICO structure allows you to ignore key protections there for the investing public and you should always ensure disclosure about your offer is complete and accurate."

The most recent action taken by the commission was on September 13, when the ASIC issued a final stop order on a Product Disclosure Statement, that was issued by Investors Exchange Limited (IEL) for units in the New Dawn Fund. This fund "was proposing to invest in a range of cryptocurrency assets. Following ASIC raising concerns about the PDS, IEL consented to a final stop order so that no units could be obtained under the PDS. ASIC acknowledges the co-operative approach taken by IEL".

Read more: Australian Securities & Investments Commission announces intent to focus on crypto

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