ASX Investigates BPG’s Penny Stock Aiming to Raise $15 Million in ICO
- ASX is looking into Byte Power Group to see whether it is in compliance with the ASX Listing Rules.
The Australian Securities Exchange (ASX) is looking into Byte Power Group (BPG), a diversified technology solutions group, to see whether it is in compliance with the ASX Listing Rules.
BPG is behind a listed penny stock that seeks to raise $15 million via an initial coin offering (ICO) to launch a cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. In order to ensure that the offering is up to scratch, ASX’s compliance team sent the firm a letter which requires the company to justify the legality of the planned ICO.
Today, BPG issued a statement which outlines the 17 questions asked by ASX, and the firm’s answers. The questions from the exchange operator, which were originally sent on August 1, 2018, ask for more details on its intended token sale which was disclosed on July 19.
Among the questions, the exchange operator inquired about the status of the ICO and sought clarification as to whether it had obtained any legal advice. This is specifically because BPG aims to become the first publicly traded company in Australia to launch a Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term via funds raised from an ICO.
BPG believes its tokens are not securities
Already, the firm has started to sell its tokens in Australia and Singapore to private investors. In the company's response published today, BPG said that it has received legal advice in Australia and Singapore that the tokens are not classified as securities and are therefore not regulated as a financial product under the Corporations Act of Australian law.
However, in September last year, Finance Magnates reported that the Australian Securities and Investments Commission (ASIC) issued regulatory guidance for ICOs. In the guidelines, the Australian watchdog said that ICOs that offer financial products should be regulated under the Corporations Act.
Specifically, it said: "If the value of the digital coins acquired is affected by the pooling of funds from contributors or use of those funds under the arrangement, then the ICO is likely to fall within the requirements relating to MISs [managed investment schemes]. This is often the case if what is offered through the ICO has the attributes of an investment."
Details on BPG’s ICO
According to a July press release, the firm wants to issue one billion Byte Power X Loyalty Tokens (BPX Tokens). At the moment the its goal is to raise $15 million. This will allow the firm to launch a cryptocurrency exchange where the BPX Tokens can be traded.
25 per cent of this amount is aimed towards private investors at US$0.06 per unit. The remainder of the tokens will be allocated for "pre-registered users of the exchange, company special releases, pre-opening and future marketing drive.”
The Australian Securities Exchange (ASX) is looking into Byte Power Group (BPG), a diversified technology solutions group, to see whether it is in compliance with the ASX Listing Rules.
BPG is behind a listed penny stock that seeks to raise $15 million via an initial coin offering (ICO) to launch a cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. In order to ensure that the offering is up to scratch, ASX’s compliance team sent the firm a letter which requires the company to justify the legality of the planned ICO.
Today, BPG issued a statement which outlines the 17 questions asked by ASX, and the firm’s answers. The questions from the exchange operator, which were originally sent on August 1, 2018, ask for more details on its intended token sale which was disclosed on July 19.
Among the questions, the exchange operator inquired about the status of the ICO and sought clarification as to whether it had obtained any legal advice. This is specifically because BPG aims to become the first publicly traded company in Australia to launch a Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term via funds raised from an ICO.
BPG believes its tokens are not securities
Already, the firm has started to sell its tokens in Australia and Singapore to private investors. In the company's response published today, BPG said that it has received legal advice in Australia and Singapore that the tokens are not classified as securities and are therefore not regulated as a financial product under the Corporations Act of Australian law.
However, in September last year, Finance Magnates reported that the Australian Securities and Investments Commission (ASIC) issued regulatory guidance for ICOs. In the guidelines, the Australian watchdog said that ICOs that offer financial products should be regulated under the Corporations Act.
Specifically, it said: "If the value of the digital coins acquired is affected by the pooling of funds from contributors or use of those funds under the arrangement, then the ICO is likely to fall within the requirements relating to MISs [managed investment schemes]. This is often the case if what is offered through the ICO has the attributes of an investment."
Details on BPG’s ICO
According to a July press release, the firm wants to issue one billion Byte Power X Loyalty Tokens (BPX Tokens). At the moment the its goal is to raise $15 million. This will allow the firm to launch a cryptocurrency exchange where the BPX Tokens can be traded.
25 per cent of this amount is aimed towards private investors at US$0.06 per unit. The remainder of the tokens will be allocated for "pre-registered users of the exchange, company special releases, pre-opening and future marketing drive.”