Recent news indicates that the financial regulator in Australia is taking a tough stand against raising capital funds through Initial Coin Offerings in the country.
The ASIC or Australian Securities and Investments Commission has plans for shutting down all such ICOs, which according to it are deceptive or misleading. In fact, the commission has been putting in efforts to protect the Aussie investors in the ICO market, which is by and large highly unregulated until now.
Till date, the regulator has managed to shut down 5 Initial Coin Offerings projects from fundraising activity since they did not have proper protective measures in place for investors. All these 5 ICOs have been put on hold till the time they meet the requirements of the ASIC and are restructured.
John Price, the ASIC Commissioner made a significant statement where he said that developers have crucial legal obligations while raising capital from the public. He further added that firms should not assume that an ICO structure enables them to overlook key protections and they should always make sure that the disclosure pertaining to the offer is accurate and complete.
The regulator has also discussed several concerns in the past pertaining to the ICOs. It also came up with a guideline last year to make sure that the crypto investors are secure. This guideline also reminded the ICO projects about their responsibilities prior to them issuing the tokens, CoinGeek reported.
Commission Wants To Protect Consumer Interests
Price also mentioned in his speech that the Australian authority is adamant to see the regtech and fintech sectors of the country develop but in the right kind of a regulatory environment.
The regulator has the same stand on ICOs used by projects for raising capital and cryptocurrencies. According to the official, the commission should focus on protecting the interests of the consumers in the county and triggering innovation in the financial services industry, CCN noted.
The post Australia’s Regulators Take Tough Stand Against ICOs For Raising Capital appeared first on OWLT Market.
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