Australian securities regulators issue formal ICO guidelines


nnThe Australian Securities and Investments Commission publishes the ICO Regulatory Guidelines, which will be tailored to the different project structures. If the value of the purchased digital tokens is affected by investor investment or the use of funds, then the ICO may be part of the management of the investment plan management, which requires the completion of some disclosure, registration and licensing obligations in accordance with the Company Law.n
nTranslation: Annie_Xun
The Australian Securities and Investments Commission issued regulatory guidelines for companies that consider launching ICOs.n
The official website of the regulatory body shows that ICO encryption in the legal treatment of token will be adjusted according to the structure. Although some of the tokens are classified under the Australian Common Consumer Rights Protection Act, the ICO that provides financial products will be subject to domestic corporate law regulation.n
In the latter case, the law will provide protection to investors, but if ICO fails to meet the definition requirements, the situation will be different.n
ASIC said:n
n”In some cases, the ICO issuer may use the rights received by the investor as a credential for the purchase of the service, but if the value of the purchased digital tokens is affected by the investor’s investment or the use of the funds, the ICO may MIS (Management Investment Plan) management scope.If the ICO products provided by the investment properties, it will always follow the above situation.n
nIf ICO is used as a MIS category, then “in accordance with the company law to complete some disclosure, registration and licensing obligations.”n
And in the case of ICOs offering financial products, ICO operators may need a market license to sell tokens.n
The law prohibits the misleading information in the investment prospectus, so the ASIC statement also warns that the law requires the ICO white paper to avoid misleading or deceptive information.n
ASIC regulator John Price said that if the token is not a financial product, “investors will need to carefully consider the ICO document, because the company law in the investor protection system will not apply.”n
The regulators’ statements were “illegal” and would undermine economic and financial stability shortly after China banned ICO projects. ASIC on the technology relative understanding, I believe it can expand the choice of corporate finance.n
The document mentions:n
n”The ASIC-approved ICO may make a significant contribution to corporate finance options and investor investment options, and the ICO approach must improve investor confidence and confidence in compliance with relevant laws.”n
nVarious international agencies, including Russia, the UK and Singapore, have issued their tokens in recent months to warn investors that they may not be protected.n
Recently CoinDesk’s Block of Blockchain shows that ICO financing in the second quarter of this year was about $ 797 million, with the amount of financing reaching $ 517 million a month alone.n

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