$50 Million ICO Stopped by Australia’s Securities Watchdog
The country’s securities regulator has halted global Tech Exchange’s initial coin offering (ICO) project planning to raise as much as US$50 million, the company announced on October 22, 2018.
Watchdog Halts ICO
Australia’s main financial regulatory body has halted an ICO that was planning on raising $50 million to commence the process of tokenization.
The ICO, initiated by Global Tech Exchange, a cryptocurrency trading and exchange platform, started its token sale on September 12, 2018, with the sales initially scheduled to run until December 10.
According to the tracking site ICO Bench, Global Tech had intended to raise somewhere between $10 and $50 million in its bid to fund the creation of a cryptocurrency trading platform.
However, the Brisbane-based project announced on its website on October 22 that its token sale has now ceased after the Australia Securities Investments Commission (ASIC) stepped in. And while the company did not disclose how much funding was raised during the time the token sale was open, it did state that it has issued full refunds to all investors, in compliance with the ASIC requirements.
Following the statement, the Global Tech Exchange’s website is non-operational, their twitter page does not exist, and the company disclosed that their spokesperson, cricket player Michael Clarke, is “no longer associated with Global Tech Exchange and Global Tech Exchange Blockchain education and awareness program.”
(Source: Business News)
Another ICO Stopped in Its Tracks
The news of Global Tech Exchange’s ICO shutdown comes after a statement from ASIC in which the agency has stated its determination to take down “misleading and deceptive conduct” in ICOs.
In the statement, issued in May 2018, the commission indicated that some of the token sales taking place in Australia “will be restructured to comply with the applicable legal requirements,” signaling that it is open to some ICOs – albeit ones that are conducted within the parameters of its legal statutes.
ASIC Commissioner John Price said that those who solicit investors for token sales have obligations “Regardless of the structure of the ICO, there is one law that will always apply: you cannot make misleading or deceptive statements about the product. This is going to be a key focus for us as this sector develops.”
Australia’s chief securities market regulator also claimed that it had stopped five ICOs from taking place since April 2018. The agency also said that it is considering further action concerning one completed ICO, but failed to provide any additional details on the matter.
ASIC is yet to issue a comment on why it had shut down Global Tech’s ICO, as an October 19, 2018, report from the agency showed that the company submitted a voluntary application for de-registration with the agency.