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.

Regulatory Responsibility

Additionally, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term 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 Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term.

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.