Australian Regulator Cracks Down on Misleading Digital Coin Offerings

Australian Regulator Cracks Down on Misleading Digital Coin Offerings
Bitcoin (virtual currency) coins are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, on May 27, 2015. Benoit Tessier/Reuters
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SYDNEY—Australia’s corporate watchdog said on Sept. 20, it was stepping up scrutiny on “misleading” initial coin offerings (ICOs) targeted at retail investors while adding it has already acted against several such proposals.

The Australian Securities & Investments Commission (ASIC) said consistent problems with proposed ICOs included the use of “misleading or deceptive” statements in sales and marketing materials and not holding Australian financial services licenses.