Aussie Financial Regulators Issue Warning on Investing in ICO’s

binary 1790842 1920

The Australian Securities and Investments Commission or ASIC issued a warning Thursday, September 20, on ‘misleading’ ICO’s or Initial Coin Offerings and cryptocurrency-asset funds aiming at retail investors.

In a media release by ASIC, The Australian regulating body has identified at least three consistent problems which involved significant risks to investors.  One is the deceptive sales and marketing statements on marketing materials. Recently, ASIC has stopped the release of a Product Disclosure Statement for a crypto investment scheme.

Another problems seen by ASIC are firms illegally operating an unregistered investment schemes. Lastly, firms that doesn’t have a licence from the Australian Financial Services.

According to John Price, ASIC Commissioner , ‘If you raise money from the public, you have important legal obligations. It is the legal substance of your offer – not what it is called – that matters. You should not simply assume that using an ICO structure allows you to ignore key protections there for the investing public and you should always ensure disclosure about your offer is complete and accurate.’

Further, ASIC advised investors to know more about ICO’s on MoneySmart which is an information page run by the financial watchdog


Marko Tee

Marko Tee

Contributor and news writer for Cryptolitan.com. Marko has 4+ years of experience as a journalist and covered cryptocurrency and blockchain technology. He has years of experience writing about tech news and innovation.

Related News

Hot Stories

Bitcoin, Ethereum, XRP, and Solana Daily Price Analyses – 6 August Roundup
Polkadot price analysis: DOT set to face yet another rejection below $1
Avalanche price analysis: AVAX spikes to $25.9
Binance CEO Urges To Move Funds From WazirX To Binance
Bitcoin, Binance Coin, Polkadot, and Polygon Daily Price Analyses – 6 August Morning Price Prediction

Follow Us

Industry News

Binance CEO Urges To Move Funds From WazirX To Binance
Bitcoin falls to $23K on U.S. jobs report
How are the top cryptocurrencies selected?
Voyager Digital set to refund users with a $270 million fund
Amidst Thailand crypto wobble, SEC continues to ok exchanges