Now Australian authorities are clamping down on ICOs

The ASIC paper described ICOs as speculative, high-risk investments and largely experimental.

Since April, in five other separate matters, the regulator successfully acted to prevent ICOs raising capital without the appropriate investor protections.

In addition, ASIC said it had recently "issued a final stop order on a product disclosure statement [PDS] issued by Investors Exchange Limited (IEL) for units in the New Dawn Fund", which it characterised as a "crypto-asset managed investment scheme".

In addition to promising greater regulatory scrutiny, ASIC has blocked five ICOs and is taking action against one that has already been completed. However, the ASIC has listed three main problems with the ICOs, the utilisations or statements that are "misleading or deceptive" for the objective of selling and marketing, conducting operations under an "illegal unregistered managed investment scheme", and not procuring a domestic financial services license.

ASIC said it has identified consistent problems within such offers, including the use of misleading or deceptive statements in sales and marketing materials, the operation of illegal unregistered managed investment schemes, and a lack of Australian financial services licences.

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Moneysmart has a warning about ICOs in which it tells the investors to do their due diligence regarding the coins and the ICOs before pledging their money, adding, "you could lose a lot of money if you buy into an ICO without doing your research first".

"ICOs use the internet to raise money, but they are not the same as crowd-sourced funding which is regulated under Australian law and offers basic investor protections".

The UK government's Treasury Committee this week released a report calling the cryptocurrency market a "Wild West situation". For now we have the news that the Australian Securities and Investments Commission (ASIC) has chose to intervene in the world of ICOs, and it's announced now that it's put the brakes on ICOs and token generation events.

The same month regulators from the US Securities and Exchange Commission and House Financial Services Committee members argued over how ICO should be regulated.

There have also been security issues, with crypto exchanges hacked regularly around the world. The nation's pro-crypto stance has earned it the nickname "Blockchain Island". The likes of Facebook, Google, Twitter and Snapchat have all banned cryptocurrency-related advertising from their platforms.

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