The corporate watchdog has ordered an Australian Bitcoin miner to stop spruiking an IPO on social media

A pile of Bitcoins. George Frey/Getty Images

ASIC, Australia’s corprorate watchdog, has placed a stop order prohibiting virtual currency miner Bitcoin Group Limited from publishing statements about an initial public offering (IPO).

The Melbourne-based company first needs the lodge a prospectus with full details of the offering before talking about an IPO.

The Bitcoin Group wants to raise $20 million at 20 cents a share from investors.

ASIC (Australian Securities and Investments Commission) says the company posted to the app Wechat, seeking expressions of interest from potential investors to subscribe for shares if there is a proposed listing on the ASX.

ASIC says it understands the company targeted potential investors from the Chinese community.

John Price, ASIC Commissioner, said: “Any statements made about a potential offer may influence the investment decisions of consumers who will not have the benefit of all material information that would be included in a prospectus.”

ASIC made a point of saying the “action relates just to this company rather than Bitcoin generally”.

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