The regulatory perspective — Obligations when raising funds through initial coin offerings

In September 2017 ASIC released Information Sheet 225 Initial coin offerings (INFO 225) to give guidance about the potential application of the Corporations Act 2001 to businesses raising funds through an initial coin offering, or ICO. 

ICOs have quickly gained global attention. They generally operate by allowing investors to use cryptocurrency to purchase 'coins' or 'tokens'. ICOs may raise funds for a variety of projects, including the development of a new cryptocurrency or distributed ledger technology related services. 

ASIC is aware of the global interest in ICOs. We recognise that ICOs have the potential to provide more fundraising options for businesses, and more investment options for investors. However, an ICO must be conducted in a manner that promotes fair and efficient markets that are supported by confident and informed investors.

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