Danielle Szetho: The guidelines provide clarity and direction for startups and investors
Late last week, ASIC released its first set of guidelines for ICOs – or Initial Coin Offerings. An ICO is a form of capital raising where a blockchain-based platform or project issues a number of ‘tokens’ which can be bought in exchange for digital currencies, including bitcoin.
These tokens are unique to the issuing company, and often grant the buyer a stake in the company or the ability to participate in the platform in the future. While ICO’s are notoriously difficult for regulators to control, ASIC has now released its guidelines and a new information sheet explaining how the Corporations Act 2001 applies to businesses raising funding through an ICO.
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