Civil Action Initiated Against Former Blockchain Global Director Following ACX's Demise
The Australian Securities and Investments Commission (ASIC) has filed civil proceedings against Liang "Allan" Guo, former director of Blockchain Global, over alleged breaches of directors' duties linked to the collapse of ACX Exchange. Guo, who was subject to interim travel restraint orders, departed Australia in September after the orders expired and has not returned since.
ASIC alleges that Guo was involved in the mismanagement of customer funds at Blockchain Global, the liquidated operator of ACX Exchange. The regulator claims that Guo made false and misleading statements about the handling of ACX customer assets and breached his duties as a director by failing to ensure the company maintained adequate financial documentation.
According to ASIC, Guo's actions led to ACX misusing funds, resulting in the platform's collapse in late 2019. Users were unable to withdraw their assets at the time.
The legal proceedings against Guo come as part of a broader regulatory trend in Australia, with the government aiming to oversee digital asset platforms more comprehensively. In March, the Treasury department proposed fresh licensing requirements for digital asset platforms that hold customer funds.
Under the proposal, exchanges, custodians, and stablecoin issuers would face new obligations, including redemption safeguards and transparency rules on token listings. Inactive crypto exchanges still listed on the register could face deregistration due to concerns that they could be exploited by criminals for money laundering and fraud.
While not directly related to the news about Guo, it is worth noting that Australia is moving towards a comprehensive reform of its digital asset regulatory landscape. The new licensing regime, consumer protections, and stablecoin regulation are designed to boost transparency, safety, and innovation in the digital asset space while aligning with global best practices.
The government has promised to release exposure draft legislation for consultation, with phased implementation to minimize disruption to existing businesses. Industry stakeholders are urging the government to fast-track these laws to secure Australia's position in the evolving digital asset economy.
- The recent legal proceedings against Allan Guo, a former director of Blockchain Global, over alleged breaches of directors' duties associated with the collapse of ACX Exchange, highlight the growing focus of the Australian government on the crypto industry.
- The proposed licensing requirements for digital asset platforms that hold customer funds in Australia are intended to address issues such as redemption safeguards and transparency rules on token listings, in a bid to increase transparency, safety, and innovation in the crypto business.
- As part of these reforms, inactive crypto exchanges listed on the register could face deregistration due to potential exploitation for crime and fraud, a concern that underscores the link between the crypto DeFi (decentralized finance) ecosystem and crime-and-justice issues.
- The trend towards comprehensive regulation in the Australian digital asset industry is not limited to matters related to crypto exchanges but also extends to stablecoin issuers, who will face new obligations under the proposed regulatory framework.
- In an effort to align with global best practices, the Australian government has promised to release exposure draft legislation for consultation, with phased implementation aimed at minimizing disruptions to the existing businesses in the general-news-related crypto and blockchain sector.
