“ASIC’s view of how financial services regulation applies to ICOs is broadly reflective of comparable regulators globally.

The level of investor protection available depends on the actual economics associated with the token’s environment, the substance and the purpose of the token being offered. ASIC’s information sheet highlights that there is no additional investor protection in the ICO context beyond the existing financial services regulation where it applies or the Australian consumer law, which will generally apply. 

The release clarifies that existing financial services regulation may apply to ICOs, and it serves as a timely warning to consumers that there are risks associated with participating in an ICO and trading cryptocurrencies more generally.”

Gilbert + Tobin’s full analysis of the ASIC guidance, including details on how initial coin offerings are to be regulated in Australia going forward, is available here

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