NGS Group challenges ASIC’s regulatory clarity in crypto lawsuit
The Hong Kong-based blockchain mining company has taken aim at the corporate regulator’s investigative approach, arguing it did not provide adequate clarity.
ASIC’s lawsuit against blockchain mining firm NGS Group has put a spotlight on regulatory uncertainty in Australia’s crypto sector, with the company arguing the corporate watchdog failed to provide clear guidance before taking legal action.
Hong Kong-based NGS Group — one of three NGS companies facing legal action — claims ASIC did not make it clear early in its investigation that the company was bound by the Corporations Act and required to register as a foreign company.
If the regulator itself was uncertain, the company argues, it was unreasonable to expect NGS Group to have known. It's an issue that links the case to other crypto lawsuits in Australia.
ASIC has alleged that NGS Crypto, NGS Digital and Hong Kong-domiciled NGS Group targeted Australian investors with blockchain mining packages promising fixed-rate returns. The companies allegedly encouraged investors to transfer their retirement savings from regulated super funds to self-managed super funds before converting those funds into cryptocurrency.
