Australian Securities and Investments Commission (ASIC) Sends Inquiries to Doubtful ICOs
ASIC (Australian Securities and Investments Commission) said earlier today that it’s currently taking aim at fraudulent activities of deceptive ICOs.
The statement released by the committee stated that the committee is currently issuing inquiries to ICOs in the market where it identifies any kind of misleading statement or conduct. Although ASIC has refrained from shedding any light on the number of token sales that have been canceled as a result of its actions, the statement made it clear that the company is quite serious on the matter.
As John Price, ASIC Commissioner said,
“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.”
We, here at CoinFrenzy, appreciate this move by ASIC to safeguard the rights of investors investing in this industry. The move had already been predicted by many people, given the statement released by Price on April 27, pointing towards the agency’s focus on fraud international ICOs eyeing potential Australian investors.
Price stressed on the fact that international ICOs would have to comply with Australian laws, that is, if they wished to continue their business and sell securities and tokens to Australian citizens.
The statement released by the agency on May 1 suggested that it is ready to scrutinize white paper, ICO market’s most popular aspect, to find out whether ICO issuers and advisers have been complying with Australian law, or not.
The agency explained that it had recently taken action to safeguard investors where it identified any concerns with the structure of ICO or the status of the issuer and disclosure in ICO’s white paper. It added that the ICO had not just included misleading statements in its white paper but also attempted to sell an unregulated investment scheme.