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Suspect crypto set-ups caught, named and shamed

crypto-asset funds, suspect, caught, handcuff

Several proposed crypto-asset launches have been blocked, as dodgy operators look to capitalise on the popular interest in cryptocurrency from Australian retail investors.

The corporate regulator, ASIC, announced this morning that it has stopped several proposed initial coin offerings (ICO) or token-generation events as well as the issue of a product disclosure statement for a crypto-asset managed investment scheme.

Although the schemes varied in nature and provider, some universal problems include misleading and deceptive statements in marketing material and operating without a valid licence.

In five other separate matters since April, ASIC blocked ICOs raising capital without the appropriate investor protections. 


Further, earlier this month, ASIC issued a final stop order on a PDS issued by Investors Exchange Limited (IEL) for units in the New Dawn Fund. The fund was proposing to invest in a range of cryptocurrency assets.

IEL has since consented to a final stop order so that no units could be obtained under the PDS.

“Initial coin offerings are highly speculative investments that are mostly unregulated, and while there are genuine businesses using this structure many have turned out to be scams,” ASIC said in a statement today.

While cryptocurrency providers are on ASIC’s radar, it’s investors who are on the Tax Office’s radar this tax time.

In particular, the ATO wants taxpayers to be aware of their obligations to declare gains when trading crypto-assets.

You can read more about the ATO’s approach to monitoring and regulation of cryptocurrency here.

Suspect crypto set-ups caught, named and shamed
crypto-asset funds, suspect, caught, handcuff
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