$50 Million ICO Shut Down in Australia

Dawid Paluch
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Global Tech Exchange (GTE), an Australian crypto startup, has ceased its Initial Coin Offering (ICO). The company hasn’t met the requirements of the Australian Securities and Investments Commission (ASIC).

Australia has very strict rules concerning blockchain-related enterprises. For instance, every exchange platform has to obey anti-money laundering regulations. The ASIC, an Australian financial supervisor, tracks down every ICO which doesn’t comply with the rules.

To separate the wheat from the chaff

Global Tech Exchange was founded more than a year ago by Andrew McLean and Marlon Donaire.

The GTE launched an ICO in summer 2018. The main goal was to raise $50 million for an educational, trading and exchange platform. The ICO was endorsed by a few influential people, including Michael Clarke, a former Australian cricket captain and a national celebrity.

Fans weren’t happy and many experts warned Clarke about ICOs. As it turned out, the voice of the people had been prophetic.

Start with laughter end with tears

On Monday, the GTE revealed on its website that the company shut down the ICO. The startup also informed that every investor would get a refund of their invested money.

According to the statement:

Michael Clarke is no longer associated with Global Tech Exchange and the Global Tech Exchange Blockchain education and awareness program.”

The reasons for shutting down the ICO remains unclear. Global Tech Exchange doesn’t clarify the cause of it and there hasn’t been also any comments from the ASIC. The move might have been triggered by the GTE itself.

Since April 6 ICOs have been closed by the commission. According to the rumors from the local market there are others on the line.

Image by Louis Roth / shutterstock.com

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