ASIC concerns about Bitcoin IPO publications
The Australian Securities and Investments Commission (ASIC) has flagged concerns about social media posts by a Bitcoin miner, announcing its intension to list on the Australian Securities Exchange (ASX), despite not having lodged documentation with the regulator.
ASIC has issued a stop order on the publication of any statements concerning Bitcoin Group Limited's intention to make an initial public offering (IPO) of its share until the company lodges a prospectus.
ASIC Commissioner, John Price, revealed that the company had published pre-prospectus statements seeking expressions of interest in a potential IPO, before it had been registered with the regulator.
Price said the regulator was concerned that Bitcoin Group Limited had targeted potential investors from the Chinese community through posts on social media application, "WeChat", seeking expressions of interest should the company make a proposed IPO.
"ASIC will often review pre-prospectus advertising or publicity to ensure legal requirements are being met," Price said.
"This is because any statements made about a potential offer may influence the investment decisions of consumers who will not have the benefit of all material information that would be included in a prospectus.'
"ASIC expects companies to be fully aware of their obligations regarding advertising or publicity that occurs before making a regulated disclosure document available to investors.
"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."
In a statement issued by ASIC, the regulator said that "in normal circumstances" it would issue a stop order in reference to fundraising documents lodged that had been lodged with it, however, in this case no documents had been lodged at the time of publication.
AUTHOR
Nicholas O'Donoghue
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