Australian Fin Regulator Suspends Five ICOs For Restructuring
The representatives of the Australian Securities and Investments Commission (ASIC) stated that they have stopped five initial coin offerings (ICO) since April of this year, CoinDesk reports.
In the statement, the commission's employees emphasize that some of these ICOs, the names of which aren’t specified, will be reorganized according to the requirements of the country's regulatory and legal acts. Essentially, ASIC is open to ICO issuers if their actions are legal. Currently, the commission is considering one ICO that has been already completed, without giving details.
ASIC paid close attention to ICOs at the beginning of this year. The commission's staff members suspended the activity of token issuers and reported that their actions lead to the deceit of investors.
If issuers attract depositors' funds, they assume the legal responsibility. The main thing is not just to raise money, but to do it legally. It is necessary to ensure that investors feel secure and have all the information about the solution proposed during the ICO, John Price, the commissioner of ASIC, stated.
In a previous commission's statement published in May, the financial regulator had already warned issuers and ICO consultants about the prevention of actions that could mislead investors. If any signs of fraud are detected, ASIC will prohibit the organization of ICOs.
As previously reported, the financial regulator of Australia published a four-year plan to control crypto startups and ICOs.