ASIC Updates Guidance on Initial Coin Offerings and Crypto-Assets

  • On 30 May 2019, the Australian Securities and Investments Commission ( ASIC ) updated its Information Sheet 225 which sets out guidance for entities that are looking to raise funds through initial coin offerings ( ICOs ) or are otherwise involved with crypto-assets.
  • Particular aspects of the information sheet that may be of interest to crypto-asset participants include: ASIC has stated that entities should be prepared to justify a conclusion that their ICO does not involve a regulated financial product; platform operators that allow crypto-assets that are financial products to be traded on the platform must hold an Australian market licence or be otherwise exempt.
  • In summary, while ASIC’s updated Information Sheet does not break any new ground in relation to the regulation of crypto-assets in Australia, it serves as a useful resource for any entity that is looking to be involved as a crypto-asset participant.
  • K&L Gates practices fully integrated offices located in the United States, Asia, Australia, Europe, the Middle East and South America and represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals.

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