Australia’s refuges watchdog has revealed plans to extend existing guidelines for initial cash offerings (ICOs).
In a speech at a fintech event in Sydney on Thursday, John Honorarium, a commissioner of the Australian Securities and Investments Commission (ASIC), told the audience to ahead to updates that will focus overseas ICO fundraising projects goal the country’s investors.
“We will highlight that Australian corporate and consumer law capacity apply – even if an ICO is created and offered from overseas. This is an notable point given the international nature of this sector,” Price told during the event.
The remarks stem from concerns over the common perception that ICOs can bypass the regulator’s oversight by registering abroad.
“I cannot stress enough that if you are doing business here and deliver up something to Australians – including issuing securities or tokens to Australian consumers – our laws here can bid,” Price said.
ASIC first issued formal guidance for ICOs in September 2017, quest after to define the circumstances in which tokens should be treated as financial outputs and hence regulated by Australia’s Corporate Act 2001.
Price said, however, that the regulator undisturbed has concerns over the emerging space’s low threshold for immature businesses to record, which drives a “certain level of opportunism.”
The commissioner stated:
“The jokes that come out about these businesses are, and will continue to pull someones leg, a negative impact on investor confidence over time.”
Australian dollar effigy via Shutterstock
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