The Melbourne-based cryptocurrency lender, Helio Lending
Pty Ltd., has been handed a non-conviction bond for misleading claims about
possessing an Australian Credit License (ACL). Helio, which offers consumers
crypto-backed loans using digital assets as collateral, was found to have
falsely asserted that it held an ACL, the regulator said yesterday (Thursday).
In a news article on its
website in August 2019, Helio touted its possession of an ACL 391330 credit
license, which the Australian regulators later revealed to be false, the
Australian Securities and Investment Commission (ASIC) stated.
Additionally, ASIC
expressed its expectation for entities and individuals to provide accurate
information to their customers, emphasizing the gravity of Helio’s actions in
allegedly misleading its clients about the protection an ACL affords.
ASIC’s Deputy Chair,
Sarah Court, remarked: “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 its customers to believe
that they had the protections afforded by such a license.”
Introduced in 2009
through the National Consumer Credit Protection Bill, the Australian Credit
License (ACL) sets stringent standards for entities wanting to provide
financial products and services to consumers. The requirements apply to banks,
credit unions, financial companies, and even crypto asset lenders like Helio.
Helio is an Australian
subsidiary of the US-based crypto-focused public holding company Cyios
Corporation. Besides that, the company owns the non-fungible tokens (NFT)
platform Randomly, which was founded in 2021.
A Changing Landscape and
Legal Proceedings
Helio is not the only
company in the crypto asset sector facing scrutiny by ASIC. In August, Finance
Magnates reported that
the regulator embarked
on legal proceedings against
eToro Aus Capital Limited (eToro). The case revolves around allegations of
eToro’s violation of its contract for difference (CFD) product’s design and
distribution obligations .
Meanwhile, in June,
Australia announced that it was taking a proactive stance in addressing the
growing concerns surrounding the de-banking of cryptocurrency entities. The
government has recently affirmed its recognition of the severity of de-banking
and the potential consequences of inaction, acknowledging the risk of pushing
crypto asset businesses into underground operations.
This decision arrived in
the wake of actions taken by financial institutions such as the Commonwealth
Bank imposing partial restrictions due to concerns about scams, and Binance
Australia discontinuing
Australian (AUD) deposits and withdrawals as a result of a third-party payment service
provider’s decision.
The Melbourne-based cryptocurrency lender, Helio Lending
Pty Ltd., has been handed a non-conviction bond for misleading claims about
possessing an Australian Credit License (ACL). Helio, which offers consumers
crypto-backed loans using digital assets as collateral, was found to have
falsely asserted that it held an ACL, the regulator said yesterday (Thursday).
In a news article on its
website in August 2019, Helio touted its possession of an ACL 391330 credit
license, which the Australian regulators later revealed to be false, the
Australian Securities and Investment Commission (ASIC) stated.
Additionally, ASIC
expressed its expectation for entities and individuals to provide accurate
information to their customers, emphasizing the gravity of Helio’s actions in
allegedly misleading its clients about the protection an ACL affords.
ASIC’s Deputy Chair,
Sarah Court, remarked: “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 its customers to believe
that they had the protections afforded by such a license.”
Introduced in 2009
through the National Consumer Credit Protection Bill, the Australian Credit
License (ACL) sets stringent standards for entities wanting to provide
financial products and services to consumers. The requirements apply to banks,
credit unions, financial companies, and even crypto asset lenders like Helio.
Helio is an Australian
subsidiary of the US-based crypto-focused public holding company Cyios
Corporation. Besides that, the company owns the non-fungible tokens (NFT)
platform Randomly, which was founded in 2021.
A Changing Landscape and
Legal Proceedings
Helio is not the only
company in the crypto asset sector facing scrutiny by ASIC. In August, Finance
Magnates reported that
the regulator embarked
on legal proceedings against
eToro Aus Capital Limited (eToro). The case revolves around allegations of
eToro’s violation of its contract for difference (CFD) product’s design and
distribution obligations .
Meanwhile, in June,
Australia announced that it was taking a proactive stance in addressing the
growing concerns surrounding the de-banking of cryptocurrency entities. The
government has recently affirmed its recognition of the severity of de-banking
and the potential consequences of inaction, acknowledging the risk of pushing
crypto asset businesses into underground operations.
This decision arrived in
the wake of actions taken by financial institutions such as the Commonwealth
Bank imposing partial restrictions due to concerns about scams, and Binance
Australia discontinuing
Australian (AUD) deposits and withdrawals as a result of a third-party payment service
provider’s decision.
