The Government has released an Issues Paper seeking feedback on Initial Coin Offerings (ICOs) in Australia and the application of Australia’s regulatory framework to ICOs.
The ICO is a relatively recent financial innovation that is attracting significant attention as a niche form of fundraising. ICOs rely on Distributed Ledger Technology (DLT), such as blockchain, and enable investment in DLT-based business ventures.
The issues paper includes an outline of the current tax treatment of ICOs and seeks a discussion about the adequacy of the tax regime and whether changes should be made. The last day for public comment is 28 February 2019.
Source: Australian Treasury website, Initial Coin Offerings — Issues Paper, January 2019.