Indicating “a serious breach of Australian Law,” financial authorities in Australia are severely tackling all misleading and deceptive initial coin offerings (ICOs). The new drive by the government has led to several virtual currency players stopping the sale of their tokens or adjusting their business models.
On Tuesday, the Australian and Securities and Investments Commission (ASIC) declared that it is tackling deceptive and misleading behavior in the selling and marketing of virtual or digital tokens through initial coin offerings (ICOs), as reported by NewsBitcoin.com.
ASIC is an independent Australian government body and the nation’s corporate regulator. NewsBitcoin.com published a statement quoting the commission as saying “these offers can involve significant risks for investors that are often not disclosed or well understood.”
The Commission also added that “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 developed.”
On April 19, the Australian Competition and Consumer Commission (ACC) with regards to the Australian Consumer Law delegated powers to the ASIC to police crypto-assets.
The ASIC is particularly tackling misleading or deceptive activity as it relates to the selling or marketing of ICOs, including ICOs that are not associated with any real institutions.
According to officials of the ASIC, they will keen on the following four fronts:
#1.Advancing of greater public interest in an ICO by the usage of social media outlets
#2 Generating the appearance of a greater level of buying and selling activity for an ICO or a Crypto-asset by undertaking or arranging for a group to engage in strategies for this course
#3.Failing to disclose sufficient information concerning an ICO
#4.Giving the impression that an ICO is a regulated product or regulator approved when it is not
According to analysts, Australia has just upped the stakes for ICOs or businesses engaged in crypto related businesses.