Invest
Deception in crypto-space under regulator scrutiny
Deceptive marketing and selling of cryptocurrencies via initial coin offerings (ICOs) has caught the regulator’s eye, as the risks associated with ICOs can be poorly understood by investors.

Deception in crypto-space under regulator scrutiny
Deceptive marketing and selling of cryptocurrencies via initial coin offerings (ICOs) has caught the regulator’s eye, as the risks associated with ICOs can be poorly understood by investors.

The Australian Securities and Investments Commission (ASIC) has announced that it will be paying particular attention to misleading or deceptive conduct in the ICO space, as misleading offers can come with “significant risks for investors that are often not disclosed or well understood”.
Noting that conduct of this type is prohibited, ASIC said it is issuing inquiries to ICO issuers and their advisers where it has found examples of deceptive conduct.
ASIC said some issuers have already began halting or modifying their ICO structure.
The regulator said it is using powers granted by the Australian Competition and Consumer Commission (ACCC) on 19 April 2018 to take action against issuers exhibiting deceptive conduct in the ICO marketing or selling space.
These delegated powers apply to deceptive behaviour, even if the ICO doesn’t involve a financial product.
It pointed to a recent case in which ASIC acted to protect investors at risk of an ICO which involved misleading statements in the white paper and which was ultimately an unregulated managed investment scheme.
As such, the offeror would have breached the Corporations Act had the offer advanced.
Commenting on the scrutiny, ASIC commissioner John Price 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.”

Cryptocurrency
Musk’s fortune tumbles alongside bitcoin following Twitter warning
Elon Musk has been dethroned, losing his title as the richest person in the world after Tesla shares dropped 8.6 per cent on Monday, instantaneously wiping US$15.2 billion off his fortune. ...Read more

Cryptocurrency
Over 100k bitcoin addresses hold over US$1m each
With forecasts emerging that Tesla is set to make more from bitcoin than profits from selling its electric cars in 2020, new research has revealed that there are now over 100,000 bitcoin addresses hol...Read more

Cryptocurrency
Ethereum’s all-time high ‘just the beginning’
The latest run for the second-largest cryptocurrency, ethereum, has seen it surge to a new record high, with an analyst stating its record run is “just the beginning”. ...Read more

Cryptocurrency
Bitcoin could surge 100% in 2021, investors believe
While some investors are feeling uneasy after bitcoin more than doubled in value in less than a month, others predict it could hit US$100,000 per coin over the next several months. ...Read more

Cryptocurrency
Aussie brands start transacting with bitcoin
Aussie watchmaker Jacopo Dondi has announced that it’s now accepting bitcoin as payment, having welcomed the world’s most popular cryptocurrency as a sign of its willingness to embrace the unconve...Read more

Cryptocurrency
Top 10 cryptoassets by trades
Bitcoin is still as popular as ever, based on analysis of the trades undertaken by crypto investors across the month of August. ...Read more

Cryptocurrency
5 ways to keep cryptocurrencies safe
Like normal money, cryptocurrencies can be vulnerable to theft, but there are ways to minimise the risks, according to an encryption specialist. ...Read more

Cryptocurrency
Cryptos fail safe haven test
Despite being touted as digital gold, cryptocurrency markets have shed billions of dollars during the pandemic, proving that they are not immune from wider fluctuations in sharemarkets. ...Read more

Cryptocurrency
Musk’s fortune tumbles alongside bitcoin following Twitter warning
Elon Musk has been dethroned, losing his title as the richest person in the world after Tesla shares dropped 8.6 per cent on Monday, instantaneously wiping US$15.2 billion off his fortune. ...Read more

Cryptocurrency
Over 100k bitcoin addresses hold over US$1m each
With forecasts emerging that Tesla is set to make more from bitcoin than profits from selling its electric cars in 2020, new research has revealed that there are now over 100,000 bitcoin addresses hol...Read more

Cryptocurrency
Ethereum’s all-time high ‘just the beginning’
The latest run for the second-largest cryptocurrency, ethereum, has seen it surge to a new record high, with an analyst stating its record run is “just the beginning”. ...Read more

Cryptocurrency
Bitcoin could surge 100% in 2021, investors believe
While some investors are feeling uneasy after bitcoin more than doubled in value in less than a month, others predict it could hit US$100,000 per coin over the next several months. ...Read more

Cryptocurrency
Aussie brands start transacting with bitcoin
Aussie watchmaker Jacopo Dondi has announced that it’s now accepting bitcoin as payment, having welcomed the world’s most popular cryptocurrency as a sign of its willingness to embrace the unconve...Read more

Cryptocurrency
Top 10 cryptoassets by trades
Bitcoin is still as popular as ever, based on analysis of the trades undertaken by crypto investors across the month of August. ...Read more

Cryptocurrency
5 ways to keep cryptocurrencies safe
Like normal money, cryptocurrencies can be vulnerable to theft, but there are ways to minimise the risks, according to an encryption specialist. ...Read more

Cryptocurrency
Cryptos fail safe haven test
Despite being touted as digital gold, cryptocurrency markets have shed billions of dollars during the pandemic, proving that they are not immune from wider fluctuations in sharemarkets. ...Read more