Embattled crypto company, Byte Power Group (ASX:BPG), has suspended its BPX Token offering in Australia following ASIC scrutiny.
The company has already sold 15,599,300 BPX Tokens to private investors in Singapore and Australia. It’s unclear at this stage how those buyers will be affected.
The company had planned to issue 1 billion tokens at a price of US$0.06 each.
The utility tokens were to be used to trade on Byte Power Group’s proposed cryptocurrency exchange, ‘Byte Power X’, however the project has faced lengthy delays.
The Australian Securities and Investments Commission has ‘concerns’ that BPX Tokens constitute interests in a managed investment scheme.
The determination, if upheld, would require Byte Power Group to obtain an Australian Financial Services licence for the token offering and the operation of the planned Byte Power X exchange.
It would also subject the token offering to the regulatory and compliance requirements applying to managed investment schemes in the Australian Corporations Act.
While the company has moved to suspend the token offering in Australia its at odds with ASIC and is seeking legal advice.
“BPG will continue to liaise with ASIC with the aim of addressing its concerns about the legal status of the BPX Tokens,” said the company.
In 2017 Byte Power Group announced the development of what was touted as the ‘first ever crypto exchange operated by an ASX-listed company’.
Testing was supposed to be completed by the end of 2017, but the exchange is yet to operate.
An agreement with Singapore-based SoarLabs Pte Ltd to establish and run the cryptocurrency exchange turned sour when SoarLabs allegedly stole more than $6.5m worth of cryptocurrency.
A legal stoush ensued before a settlement was reached between the parties in May.
The exchange is now being developed by Malaysian-based Noetic Synergy.
In its latest quarterly report (released 31/10/18), the company said the development is progressing.
“The Group is making good progress on its Cryptocurrency exchange. The BPX development team have now delivered an updated user interface.
“Discussions with banking institutions are still ongoing in relation to the provision of pairing facilities.
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