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Australia Shuts Down Fake and Illegal ICOs

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Amsterdam, the Netherlands - September 7, 2018 Website of The Australian Securities and Investments Commission or ASIC, Australia's corporate regulator. Source: shutterstock.com

The Australian Securities and Investments Commission (ASIC) confirmed the shutdown of several ICOs on the ground of fraudulent marketing strategies or other illegal practices. As identified by ASIC, a large number of fraudulent companies are looking to ICOs as the perfect way to trick people into crowdfunding projects. ASIC Commissioner John Price told the local press:

“If you raise money from the public, you have important legal obligations. It is the legal substance of your offer.”

He then added to the statement by saying:

“You should not simply assume that using an ICO structure allows you to ignore key protections there for the investing public.”

Despite current efforts made by government agencies, these scams keep finding ways to see the light of day.

Australia Is Fighting for Cryptocurrency Taxes

In a March report by a local press, then Assistant Minister to the Treasurer Michael Sukkar said he was working with people both from the Treasury and the Australian Taxation Office (ATO) on how to characterize and tax digital currencies.

ATO has released a guide for the tax treatment of cryptocurrencies in the country. So far, this guide only provides recommendations rather than real laws you must abide by.

Losers Will Want Tax Breaks, and Winners Will Keep Cryptos Off Their Books

The real concern within the Australian government is that taxing cryptocurrencies will ultimately result in a decrease in tax revenue, something that the local government is absolutely keen on avoiding. The fear is that people that lose in the cryptomarket will seek to report those losses in their tax reports, effectively giving them a break on their other assets.

On the other hand, people who make a profit from crypto trading will try and keep their assets within the digital realm. The problem can become very similar to the treatment of offshore accounts in places like Switzerland and some Caribbean islands.

In any case, Australia’s stance on ICOs can be an indication that a major breakthrough in Australian law regarding cryptocurrencies may be just around the corner.

Australia Shuts Down Fake and Illegal ICOs was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.