The Australian Securities and Investment Commission (ASIC) has announced a crackdown on dubious initial coin offerings (ICOs).
The announcement follows recent comments from ASIC Commissioner John Price last week when he said that the securities regulator would be updating its ICO guidance in coming weeks.
The ASIC last month received delegated powers from the Australian Competition and Consumer Commission (ACCC) to take action against misleading or deceptive conduct in marketing or selling of ICOs, even when the offering does not involve a financial product.
In an official announcement, dated May 01, 2018, the ASIC said that it is issuing inquiries to ICO issuers and their advisers where it identifies conduct or statements that could be misleading or deceptive. This is in addition to ASIC’s inquiries where it identifies potentially unlicensed conduct.
“If you are acting with someone else’s money, or selling something to someone, you have obligations. Regardless of the structure of the ICO, there is one law that will always apply: you cannot make misleading or deceptive statements about the product. This is going to be a key focus for us as this sector develops,” Price said.
ASCI said that as a result of its inquiries, some issuers have halted their ICO or have indicated the ICO structure will be modified.
