News ASIC's Initial Coin Offerings Regulation Leaves Some Room for...

ASIC's Initial Coin Offerings Regulation Leaves Some Room for Interpretation

-

- Advertisment -

Virtually every country in the world is looking to regulate initial coin offerings. That isn’t entirely surprising, though. This new method of raising capital is unregulated and investors are not protected whatsoever. Moreover, companies are not held responsible for defrauding investors or not delivering on their promise. Australia is the latest country to issue their own ICO guidelines as of late.

It is good to see Australian regulators crack down on initial coin offerings. While most of these projects are legitimate, there will always be certain risks. The Australian Securities and Investments Commission now has official guidelines for ICOs. This only affects projects organized in Australia itself, though. Anyone living in the country, but investing in foreign ICOs may not necessarily be protected by these new rules for the time being.

Official Guidelines for Initial Coin Offerings

More specifically, token sales in Australia are regulated under general consumer law. That in itself is a rather interesting decision, to say the least. There is one requirement, though, as these companies may not offer financial products whatsoever. It will be hard to classify which projects do or don’t in this regard. After all, a lot of projects create value out of thin air, which makes every token a financial product of sorts.

Investors will enjoy a certain degree of protection when it comes to ICOs. However, any project not meeting its initial goals will not be subject to these rules. That is a problematic way of handling things, to say the least. There is no reason for local projects not to raise money, deliver part of the goods and then take off with the money. It is expected this part will need further clarification sooner rather than later.

In the end, some of the responsibilities lie with investors themselves as well. It is their job to investigate every ICO before making a financial contribution. That is easier said than done, as most people don’t even read a whitepaper or announcement. This lack of attention will cost a lot of people some good money in the long run. For now, it remains to be seen how things play out in Australia and the rest of the world. Initial coin offerings are still a major risk, to say the least.

Header image courtesy of Shutterstock

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...
- Advertisement -ASIC's Initial Coin Offerings Regulation Leaves Some Room for Interpretation

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...
- Advertisement -ASIC's Initial Coin Offerings Regulation Leaves Some Room for InterpretationASIC's Initial Coin Offerings Regulation Leaves Some Room for Interpretation

You might also likeRELATED
Recommended to you