Australian Regulator to increase Scrutiny of Crypto Exchange and ICO

Australian Regulator Hints at Increased Crypto Exchange and ICO Scrutiny

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  • Australian regulator makes move to heighten investigation on cryptocurrency exchanges and ICOs.
  • Byte Power Group claimed that it already met all the necessary conditions to carry on with its token sale.

Australia: The Australian Securities and Investments Commission, which function as Australian regulator, published its ‘Corporate Plan’ this week where the body stated its plans to heighten investigation on crypto exchanges and Initial Coin Offerings (ICOs).

According to the plan, the Australian regulator named the exchange sector as its area of priority through 2022. As part of its regulatory responsibility, ASIC has the plan to mitigate any “threats of harm” from the cryptocurrency exchanges and ICOs industry.

The plan stated:

“Potential harms from technology driven by the growing digital environment and structural changes in financial services and markets.”

As stated by ASIC:

“We will continue to focus on monitoring threats of harm from emerging products (e.g. ICOs and crypto currencies), cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyber-based mechanisms.”

In the meantime, the Australian regulator would keep a close eye, especially on ICO, with the aim of bringing about compliant behavior.

ASIC mentioned this as one of its 2018-20119 projects:

“Monitoring emerging products, such as ICOs, and intervening where there is poor behavior and potential harm to consumers and investors.”

ASIC added that its second area of focus next year would be

“developing our approach for applying the principles for regulating market infrastructure providers to crypto exchanges.”

The corporate plan was released the same week the first cryptocurrency exchange in Australia to raise funds through an Initial Coin Offering gave a response to series of enquiries from Australian Securities Exchange (ASX), a fellow securities regulator, over its own plans.

Amidst this controversial regulatory environment, the firm planning to start a cryptocurrency exchange, Byte Power Group, claimed that it already met all the necessary conditions to carry on with its token sale.

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