The Australian Securities and Investments Commission (ASIC) has banned a bitcoin company from issuing statements on its proposed initial public offering (IPO) until a formal prospectus has been lodged.
ASIC commissioner John Price said:
"ASIC will often review pre-prospectus advertising or publicity to ensure legal requirements are being met. This is because any statements made about potential offers may influence the investment decisions of consumers who will not have the benefit of all material information that would be included in a prospectus."
The commissioner said companies should be fully aware of their obligations regarding advertising and publicity prior to an IPO.
"If they do not observe these requirements, then ASIC will take necessary action so that investment decisions are made in a confident and fully informed environment,” he added.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.