The Australian financial-market regulator issued an asset bubble warning in respect to initial coin offerings, joining several other government bodies in the region concerned about the potential risks for investors.
The Australian Securities and Investments Commission (ASIC) released guidance for businesses that undertake initial coin offerings (ICOs), amid fears of an asset bubble. The burgeoning ICO industry is largely unregulated and ASIC is now warning investors on the risk of losing their cash.
ASIC wants to ensure innovative firms understand the regulatory framework they may be operating under and ensure they meet any obligations they may have when raising funds in Australia. ASIC and the Australian Competition and Consumer Commission (ACCC) also jointly warned people of the potential risks of investing in ICOs.
Co-ordinated Cry
«ICOs are highly speculative investments, are mostly unregulated and the chance of losing your investment is high,» ASIC Commissioner John Price said. «Consumers should understand the risks involved, including the potential for these products to be scams, before investing.»
The Australian regulator joins a growing list of Asia-Pacific voices warning of the dangers of ICO's. China, Hong Kong, Singapore and Malaysia have all recently gone on record to make investors aware of the risks. Japan's Financial Services Authority (FSA) is also stepping up monitoring the offerings.
