Australia Looking to Go Easy on ICOs

It may have warned that token sales were starting to look a little frothy, but from the looks of things, the Australian government is really warming up to them.

According to Cryptocoinsnews, the Australian government recently unveiled a set of legislative drafts aimed at boosting fintech startups down under. The drafts, called a “game-changer” by Australian Federal Treasurer Scott Morrison, are primarily designed to enhance the country’s regulatory sandbox by extending its scope of activities and by removing the

licensing requirements of the Australian Securities and Trade Commission (ASIC).

Under the proposed framework, Aussie fintech startups can now test non-cash payments products and financial advisory services, among others. For token sale fans however, this may what they have been waiting for:

Notably, the marked inclusion of a ‘crowd-funding service’ will come as a relief for startups and companies seeking finance through initial coin offerings (ICOs), a radical new form of fundraising powered by cryptocurrencies.

Earlier in September, Australian regulators issued guidelines for those participating in ICOs, warning that these are “highly speculative” investments with a “high” potential of losing money in. However, ASIC also recognized the medium’s promise, saying that “ICOs have the potential to make an important contribution to the options available to businesses to raise funds and to investment options available to investors.”

Before anyone gets too excited however, consultations on the drafts are open until the first of December, which means a lot can still happen before the final draft gets submitted to become a law.

Photo: Public Domain