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.”
RELATED ARTICLES
Cryptocurrency
Ethereum and Niche Tokens Give Australia a Unique Edge: Kraken’s 2025 Wallet Analysis
Kraken, a prominent and secure global cryptocurrency platform, has unveiled a comprehensive analysis of millions of wallets from its Australian clientele, showcasing unique trends in crypto asset ...Read more
Cryptocurrency
Gemini strengthens Australian presence with new leadership and AUSTRAC registration
In a significant move to bolster its presence in the Asia-Pacific region, global cryptocurrency platform Gemini has announced a strategic expansion in Australia. This development includes the ...Read more
Cryptocurrency
Asset managers eye $235bn tokenisation opportunity as TradFi and DeFi converge
In a striking revelation, a global survey conducted by Calastone has unveiled a $235 billion opportunity for tokenised funds, highlighting a significant convergence between traditional finance ...Read more
Cryptocurrency
Big four bank pilots crypto‑backed mortgages: what it means for lenders, borrowers and the market
An Australian big four bank is trialling home loans secured by units in a regulated Bitcoin ETF — a cautious bridge between digital assets and traditional credit. If executed well, the model could ...Read more
Cryptocurrency
Webull launches cryptocurrency trading for Australian investors
Webull Securities Australia Pty Ltd, a subsidiary of Webull Corporation, has unveiled its cryptocurrency trading platform for Australian users, marking a significant expansion in the company’s ...Read more
Cryptocurrency
OKX launches automated trading bots for Australian crypto traders
Cryptocurrency platform OKX Australia has introduced two automated trading bots aimed at helping local traders manage their digital asset portfolios around the clock. Read more
Cryptocurrency
New survey reveals high crypto adoption in Australia amid housing affordability concerns
A new survey by Protocol Theory, in partnership with cryptocurrency exchange Easy Crypto, has found that nearly 50% of Australians have bought or are considering buying cryptocurrency in the next ...Read more
Cryptocurrency
Investing in digital assets: A new avenue for earning
The digital age has introduced a plethora of new investment opportunities, ranging from cryptocurrencies and blockchain technology to digital art and tokenized assets. For investors in Australia ...Read more
Cryptocurrency
Ethereum and Niche Tokens Give Australia a Unique Edge: Kraken’s 2025 Wallet Analysis
Kraken, a prominent and secure global cryptocurrency platform, has unveiled a comprehensive analysis of millions of wallets from its Australian clientele, showcasing unique trends in crypto asset ...Read more
Cryptocurrency
Gemini strengthens Australian presence with new leadership and AUSTRAC registration
In a significant move to bolster its presence in the Asia-Pacific region, global cryptocurrency platform Gemini has announced a strategic expansion in Australia. This development includes the ...Read more
Cryptocurrency
Asset managers eye $235bn tokenisation opportunity as TradFi and DeFi converge
In a striking revelation, a global survey conducted by Calastone has unveiled a $235 billion opportunity for tokenised funds, highlighting a significant convergence between traditional finance ...Read more
Cryptocurrency
Big four bank pilots crypto‑backed mortgages: what it means for lenders, borrowers and the market
An Australian big four bank is trialling home loans secured by units in a regulated Bitcoin ETF — a cautious bridge between digital assets and traditional credit. If executed well, the model could ...Read more
Cryptocurrency
Webull launches cryptocurrency trading for Australian investors
Webull Securities Australia Pty Ltd, a subsidiary of Webull Corporation, has unveiled its cryptocurrency trading platform for Australian users, marking a significant expansion in the company’s ...Read more
Cryptocurrency
OKX launches automated trading bots for Australian crypto traders
Cryptocurrency platform OKX Australia has introduced two automated trading bots aimed at helping local traders manage their digital asset portfolios around the clock. Read more
Cryptocurrency
New survey reveals high crypto adoption in Australia amid housing affordability concerns
A new survey by Protocol Theory, in partnership with cryptocurrency exchange Easy Crypto, has found that nearly 50% of Australians have bought or are considering buying cryptocurrency in the next ...Read more
Cryptocurrency
Investing in digital assets: A new avenue for earning
The digital age has introduced a plethora of new investment opportunities, ranging from cryptocurrencies and blockchain technology to digital art and tokenized assets. For investors in Australia ...Read more
