In the last few hours, Australasia Regulators issued formal guidance on ICO's. It was just a few days ago that I authored and published the post, speaking of the concerns for the ICO market, along with the specific reasons as to why the concern for bitcoin and crytptocurrency, among other things.
The ASIC (Australian Securities and Investments Commissions) only hours ago issued regulatory guidance's for businesses consider launching an initial coin offering (ICO).
The legal treatment of cryptographic tokens issued in ICO's will very depending on the structure. Some token sales will be directly under consumer laws and ICO's offering any financial product, and those will be regulated under there country's Corporation Act.
There are some protections for investors in the regulations guidelines, but it depends on each ICO, and how, specifically, they are structured.
According to Coindesk, ASIC states "In some cases, ICO issuers may frame the entitlements received by contributors as a receipt of a purchased service. However, if the value of the digital coins acquired is affected by the pooling of funds from contributors or use of those funds under the arrangement then the ICO is likely to fail within the requirements to MISs [managed investment schemes]. This is often the case if what is offered through the ICO has the attributes of an investment."
Furthermore, the regulations provides that if the CO is considered a MIS, there are a "range of disclosure, registration, and licensing obligations under the Corporations Act." the document reads.
In the case of an ICO offering of a financial product, the ICO operator may require a market license to sell tokens.
With misinformation in investment prospectuses prohibited by law, the ASIC is focusing on the "whitepapers" that issue misleading or deceptive statements; an area to which I specifically mention in my post just days ago before this announcement by Australia Regulator(s).
AS many are aware China issued an all -out ban on ICO schemes, stating they are "illegal and disruptive to economic and financial stability".
As I wrote and reported this concern days before this announcement, and others ICO schemes to which the SEC also took action in the last 24 hours, I encourage you to consider reading my prior post, and following the blog.
Comments are encouraged. Stay tuned, and upvote below and re-steem, and share. Why is this news relevant?
I hope to expand on this very topic and much more. After being in the financial sector and a Certified fraud examiner, as well as well as conceptualizing, designing and building both core information architecture for the financial sector marketplace, I've also audited the banks through my former forensic auditing company; Additionally, with a span in the sector of international banking and compliance for nearly 20 years, I hope to help this sector in many ways.
Stay tuned. Below you will find posts from a prior, and earlier from a few parties who have asked in the last 24 hours the following:
(Please keep in mind the Post that they are referring to is that to which you can find on the Blog Post, by visiting steemit.com/@kushpay):
Below are Comments and exchanges in light social discussion today prior to this announcement and are as follows (excuse the grammatical errors, etc), where I further address just some of the questions being asked:
Geary Davis: You know, it's scary to me how many people DON'T question bitcoin's creation. What are the chances of a decentralized cryptocurrency being created just as the housing market crashed? A cryptocurrency that would take years to create. It would appear that bitcoin was being created behind the scenes for years, by the same people that orchestrated the stock market collapse. When the project was ready for field testing, they released it and pull the rug from underneath the housing market. They've been testing it since.
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Dipesh Patel
Geary Davis: whatever the truth, one thing is for sure, the person or group "Satoshi Nakamoto" are incredibly wealthy at todays BTC price and if cryptos are the future after the next major crash, he or they have a real head start. I hope bitcoin is a NSA/CIA/MIT project gone rouge and not stategically placed by the deep state elements.
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Shawn Aaron: Geary Davis...shadow banking...perhaps..specifically there has been secured transactions (article 9 of the ucc) going back nearly 60 years. Perhaps the words 'bitcoin' and 'blockchain'...especially blockchain has been around for a long long time but to spur economies at large, the banking cartel decided to do some window dressing? Not saying blockchain is not incredible, but understanding beneficial interest and secured transactions, along with chain and custody of titles...has been around for longer than blockchain. It wouldn't surprise me given the market collapse that the entire model was prepared prior to the collapse so to give new "hope" and to help digitize economies of scale. I talk about exactly what you mention in a previous post written by me on steemit.
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Dipesh Patel Shawn Aaron just read that post. Good work. These are questions/matters that need to be addressed. This shouldn't be considered FUD, because I really think bitcoin/blockchain could change the world. But with increased popularity, has to come more understanding of the true nature and creation of this technology.
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Shawn Aaron Thank you Dipesh Patel. That means a lot to me.😊
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Omar Abouelnasr: I was actually just thinking about that. Are you familiar with the similarities between the tor browser tech and bitcoin tech? Tor was created by the us navy and bitcoin was the first crypto used to cater transactions between entities using the tor browser.
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Shawn Aaron: Omar Abouelnasr I am not familiar with a lot of the tech language but certainly familiar with core information architecture and secured transactions, however I will soon be speaking about stored value, regarding smart contracts, future expectancy and the damning of derivatives and cross-collateralization.
Then I'll be discussing areas of actual value, how specifically linear the blockchain is in fact, as well as the disruptions, and how specifically, much of the order of things happening. I'll further be discussing the absence of mining and the differential treatment any cryptocurrency could in fact have. Most people have no clue that the majority of the cryptocurrency space is a company concept (whitepaper explains) achieving milestones, a solid board of directors (that may or may not be window dressing), and perceived value.
Moreover, i'll be discussing revolutionary models using nodes, master and supernodes, accounting, and how the market capitalization of many cryptocurrencies do and don't make sense. There is more to this that the average party really knows. I hope you and the rest of the people on this board will enjoy and perhaps be enlightened about how smart contracts, supernodes, voting power, building proof of stake and proof of work rewards, along with much more must in fact be given weight into the overall valuation of things to come....stay tuned! I'll be discussing manipulation, derivatives, and dilution amongst others, even given 'finite' coin amounts and allocation. This along with the many financial products that may have a serious impact on any given currency.
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Geary Davis: Shawn Aaron what's the link to your steemit post? Your comments have gotten my wheels turning! !!
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Shawn Aaron Geary Davis https://steemit.com/@kushpay
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Copyright 2017. By Shawn Aaron. Shawn Aaron is the CEO and founder of Kushpay and KushPay Ltd. All rights reserved and retained by Shawn Aaron and/or KushPay Holdings or it's assign(s). [Dis]Claimer: Trademarks herein are the rights of KushPay™, and it's respective owner(s) and assign(s).
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