Australian Regulator ASIC plans to combat ICO fraud by "issuing inquiries to ICO issuers and their advisers where we identify conduct or statements that may be misleading or deceptive."
2 May, AtoZ Markets – The key financial regulator of Australia, the Australian Securities and Investments Commission (ASIC) has made it clear that it is planning to combat the fraud that is present in the initial coin offering (ICO) market.
Australian Regulator ASIC Plans to Combat ICO Fraud
The agency has issued a statement yesterday, where it has noted that it is "issuing inquiries to ICO issuers and their advisers where we identify conduct or statements that may be misleading or deceptive." Moreover, the watchdog has proposed that it decided to move to halt the unregistered activity of ICOs.
The ASIC has also stated:
"As a result of our inquiries, some issuers have halted their ICO or have indicated the ICO structure will be modified."
However, the regulator did not specify how many token sales are about or were canceled or changed in link with the latest agency actions.
ASIC to Investigate ICOs White Paper
ASIC commissioner John Price has explained:
"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."
Mr. Price has reportedly spoken about token sales on April 27, stating that the intention of the agency is to focus on foreign ICOs that solicit the Australian investors. He has noted:
"I cannot stress enough that if you are doing business here and selling something to Australians - including issuing securities or tokens to Australian consumers - our laws here can apply.”
This Tuesday, ASIC has stated that it would investigate a marketing aspect of ICO marketing – the white paper. The agency highlighted:
"In one recent example, ASIC took action to protect investors where we identified fundamental concerns with the structure of an ICO, the status of the offeror and the disclosure in its white paper. In addition to potentially misleading statements in the white paper, the offer was an unregulated managed investment scheme."
The ASIC looks into whether the white paper promoted sales come in line with the Australian law.
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