Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Australian Securities and Investment Commission (ASIC) has penalized the Melbourne-based cryptocurrency lending company Helio for inaccurately asserting that it possessed an Australian credit license (ACL) in August 2019.
As stated in an official announcement from the ASIC, Helio received a non-conviction bond and entered into a recognizance of A$15,000 ($9,600) for a duration of 12 months, contingent upon maintaining good behavior.
ASIC Sentences Helio
The Australian securities authority charged Helio in April 2022, alleging that the firm misrepresented in a news article on its website that it held an ACL, which it did not. The lender also indicated in an investor update that it acquired the license through the purchase of CashFlow Investments.
However, on both instances, Helio, which provided crypto-backed loans, was neither an ACL holder nor a representative of an ACL holder, according to the ASIC. The firm’s actions breached section 30 of the National Consumer Credit Protection Act 2009.
The crypto lender admitted guilt to ASIC’s allegations, and the regulator took the plea into account during sentencing. The Commission retracted a second charge concerning alleged content on Helio’s website from February 2019 and sentenced the firm under section 19B(1)(d) of the Crimes Act 1914(Cth).
Related Posts
ADVERTISEMENT
ASIC Deputy Chair Sarah Court stated: “We expect entities and individuals to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian Credit license, misleading their customers to believe that they had the protections afforded by such a license.”
ASIC’s Crackdown on Crypto Firms
The ASIC has recently launched a crackdown on various crypto firms. Helio’s sentencing follows just two weeks after the regulator filed a lawsuit against the crypto-related trading platform eToro over allegations that its contract for difference (CFD) product could be detrimental to investors.
A CFD is a leveraged derivative product that allows users to speculate on the prices of digital assets. eToro was one of the first companies to facilitate bitcoin trading via CFDs and subsequently expanded support to other cryptocurrencies.
CryptoPotato reported that the Australian regulator contended that eToro’s CFD products may not have undergone adequate testing prior to their release to users, given their high risk and volatility.
The agency also estimated that approximately 20,000 eToro customers incurred losses between October 2021 and June 2023 while trading CFDs. The crypto lending platform admitted guilt to ASIC’s charges, and the regulator considered the plea during sentencing.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
