On 20 September 2018, ASIC announced it has taken action to stop several proposed initial coin offerings or token-generation events targeting retail investors.
In addition, ASIC issued a final stop order on a Product Disclosure Statement (PDS) for a crypto-asset managed investment scheme issued by Investors Exchange Limited for units in the New Dawn Fund.
ASIC has identified the following recurring issues in relation to initial coin offerings and crypto-asset funds:
- the use of misleading or deceptive statements in sales and marketing materials;
- operating an illegal unregistered managed investment scheme; and
- not holding an Australian financial services licences.
Taxpayers and consumers should be aware of these issued before making speculative investments.