Australian corporate and consumer law might apply to initial coin offerings (ICOs) offered from abroad, an Australian Securities and Investments Commission (ASIC) official said recently.
Speaking at a FinTech event last week, ASIC commissioner John Price outlined the ongoing efforts of the securities regulator on ICOs and cryptocurrencies.
The ASIC last year published an information sheet, which provided guidance for entities considering an ICO. Price said that the regulator will be making some updates to the information in the forthcoming weeks.
The updates will revolve around the questions the regulator considers important to be explained to all potential investors, consumers or users, Price said, adding that this is intended to encourage sound business decision making.
“We will also expand the scope of the information sheet to include more on cryptocurrencies,” Price said. “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.”
He emphasized on one law that would always apply – “you can’t make misleading or deceptive statements about the product.” Price said that the updates will also include information on how Australian law prohibiting misleading or deceptive conduct will apply in this space.
