ASIC announces action on misleading or deceptive conduct in ICOs

ASIC has already taken action against suspicious ICOs.

ASIC chairman John Price recently warned that Australian consumer law would apply to ICOs, even if they were extended from overseas. On 1 May ASIC announced that this would start taking the form of a crackdown on deceptive or misleading conduct by ICOs, which is prohibited under the Australian Consumer Law and the ASIC Act.

It’s started issuing inquiries to ICO issuers and their advisers where it has identified conduct or statements that may be misleading or deceptive. “This is in addition to our inquiries where we identify potentially unlicensed conduct” is said.

The inquiries have already seen some token issuers stop their ICOs, or say that they will be modifying their ICO structure to comply with Australian law.

“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,” Price said.

The ASIC release gives the specific example of an identified violation, where it took action to protect investors from an ICO whose structure, offeror and whitepaper disclosures raised fundamental concerns.

To read more, please click on the link below…

Source: ASIC announces action on misleading or deceptive conduct in ICOs | finder.com.au