Initial coin offerings (ICO) will be a “key focus” for Australia’s corporate watchdog as it looks to update guidance on companies considering raising funds by issuing digital coins or tokens, a top official said on Thursday.
The Australian Securities & Investments Commission intends to update guidance on companies considering raising funds by issuing digital coins or tokens, stating that Initial coin offerings (ICO) will be a “key focus”, Commissioner John Price said on Thursday. The Commission will expand the scope of its guidance in coming weeks to include more questions and details on ICOs.
We will highlight that Australian corporate and consumer law might apply – even if the ICO is created and offered from overseas. This is an important point given the international nature of this sector. I think you can expect a strong focus from us in this area.
Commissioner, The Australian Securities & Investments Commission
The Commission will also highlight information on how Australian law prohibiting misleading or deceptive conduct will apply in this space.
The ICO market is still small in Australia but Price said there was a “certain level of opportunism... because it is seen as an easy, low regulation, low-cost option which could lead to immature businesses coming to market.”