Zucoins L.P. acknowledges ASIC investigation in relation to “Zucoins”.
Monday, 1 August 2022 ALBURY: Zucoins L.P. acknowledges that the Australian Securities & Investments Commission (ASIC) has exercised its powers under Part 3 of the Australian and Investments Commission Act 2001 (Cth) (ASIC Act) requiring the giving of all reasonable assistance or production of books in connection with an investigation referred to in notices issued by ASIC under either s19 and s33 of the ASIC Act (Notice).
In accordance with a Notice issued to myself (Allan Endresz and founder), I was required by the relevant statutory provisions to provide reasonable assistance in circumstances where ASIC, on reasonable grounds, suspects or believes that I could give information relevant to a matter that ASIC is investigating, or is to investigate, under Division 1 of Part 3 of the ASIC Act.
Significantly, Zucoins L.P. is fully cooperating with ASIC during its investigation and is legally, technically and financially prepared to strenuously justify and defend its conclusion that Zucoins L.P. is not “carrying on a financial services business” in circumstances where Zucoins (built on the Splitchain native protocol) are not considered to fall within either the general or specific statuary definitions of a “financial Product”.
Zucoins are not considered to be a “facility” through which, or through the acquisition of which, a person can:
(a) Make a financial investment.
(b) Manage financial risks.
(c) Make Non-Cash Payments.
Zucoins are not considered to be a “managed investment scheme” where buyers of Zucoins do not contribute (expressly or impliedly) any money as consideration to acquire rights (interest) to benefits produced by Zucoins L.P. Buyers only purchase the Zucoins, which are a digital crypto asset where proceeds from the sale of Zucoins are not pooled (nor intended to be pooled by either the vendor (Zucoins L.P. or the Zucoin buyers), or used in a common enterprise, to produce financial results, or benefits consisting of rights or interests in property for any persons purchasing Zucoins.
To assist ASIC in its investigation, I was compelled to provide ASIC with all the latest personal information of each Zucoin buyer, together with the number of Zucoins purchased and the consideration paid.
Zucoin buyers should expect to receive a phone call and/or email from an ASIC Representative seeking further information about your Zucoins. It is important to note that unless you receive an official s.19 or s.33 Notice, you are not compelled by law to answer any ASIC questions or to provide ASIC with any documents, emails or electronic material whatsoever. It is within your rights to politely refuse ASIC’s enquiries and or to provide additional material. In fact, ASIC should caution you that the assistance you provide is voluntary only.
Recently, it has been bought to our attention that ASIC is misleading Zucoin Buyers into thinking that they must provide assistance. Below are two emails that ASIC have recently sent out requesting assistance. You will clearly notice in the first email, ASIC discloses that your information is only provided on a voluntary basis only. In the second email, ASIC deliberately deletes this last sentence to intimidate you.
Know your rights and treat ASIC with great caution.
To verify the legitimacy of an ASIC Representative please email [email protected] or call Warren Jacobs, Senior ASIC Investigator on 0466 290 064 to seek verification.
NEVER SHARE any personal or Zucoin information over the phone unless you:
- Are absolutely certain that the person at the end of the phone is a legitimate ASIC Representative.
- Are prepared to volunteer your personal and or Zucoin information to ASIC of your own free will. Remember, unless you have been issued with a s.19 or s.33 Notice you are not compelled by law to volunteer any personal or Zucoin information to ASIC.
- Obtain independent legal advice. ASIC may call you as a witness and involve you in subsequent legal proceedings or possibly share your personal and zucoin information other Government agencies.
Zucoins L.P. warmly welcomes ASIC’s investigation and is only too pleased to provide reasonable assistance as demanded by the law.
Zucoins L.P. remains quietly confident that the integrity and reputation of your Zucoins and the Splitchain native protocol will be further enhanced after ASIC’s investigation is completed.
Remember: Zucoin buyers simply purchase Zucoins. They are a crypto asset (commodity) as defined by the ATO for GST purposes. To better understand what Zucoins (Crypto assets) really are, take the time to watch “It’s ZuTime: Season 2, Episode 10 “ASIC, the banks and Zucoins” and think about the “Penfolds Grange Hermitage” analogy.
Watch the ‘It’s ZuTime’ episode addressing this topic here.
Should you have any queries, please do not hesitate to contact [email protected]