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Australia-based Helio Lending Faces Non-Conviction Bond after False Credit License Claim

Australia-based cryptocurrency lender, Helio Lending Pty Ltd, has received a non-conviction bond following the discovery that they falsely claimed to hold an Australian credit license. This false claim was made in an August 2019 news article on the company’s website, as revealed by the Australian Securities and Investments Commission (ASIC).

During that time, when Helio represented itself as a provider of cryptocurrency-backed loans with digital assets as collateral, it did not possess a credit license or act as a representative of one. Helio, after pleading guilty to the charges, has been issued a fine as a result.

It is crucial for companies to provide accurate information to their customers and potential clients. ASIC’s Deputy Chair, Sarah Court, emphasized the significance of this, stating that Helio’s false claims deceived clients into believing they were protected by a valid credit license.

The non-conviction bond imposed on Helio amounts to AUD 15,000 ($9,600) for a duration of one year, contingent on maintaining good behavior. This is generally the kind of sentence given for less severe offenses. The bond means that Helio will only face conviction if the terms of the bond are violated, and the potential penalty of AUD 15,000 is considerably less than the maximum penalty they could have faced, which amounts to AUD 160,000.

The lenient sentencing decision was influenced by Helio’s guilty plea. Additionally, a charge related to false content on Helio’s website back in February 2019 was dismissed. Helio is a subsidiary of the US-based Cyios Corporation and is associated with the upcoming non-fungible token platform, Randombly.

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Crypto Firms in Australia Under Increased Regulatory Scrutiny

This legal action against Helio Lending is part of ASIC’s broader efforts to regulate the cryptocurrency space in Australia. In recent weeks, ASIC has initiated other lawsuits within the crypto sector. For instance, the regulator sued trading platform eToro, alleging inadequate screening tests before offering leveraged derivative contracts to retail investors. Similarly, ASIC sued financial product comparison site Finder.com in December of the previous year over an allegedly unregistered crypto yield-bearing product.

Helio’s case follows the National Australia Bank’s recent move to block certain payments to cryptocurrency exchanges categorized as “high-risk” in recent months.

In light of these regulatory challenges, industry professionals, such as Coinbase executive Shirazad, have urged lawmakers to establish clear crypto regulations in Australia. The introduction of comprehensive guidelines, akin to the Markets In Crypto Assets Regulation (MICA) in Europe, is desired to address the growing uncertainty surrounding cryptocurrencies and provide a stable regulatory environment for companies operating in the sector.

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