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Australia-Based Crypto Lender Sentenced for False Credit License Claims

Australia-Based Crypto Lender Sentenced for False Credit License Claims

The Australian securities regulator recently revealed that the crypto lending platform Helio pleaded guilty to the allegation of falsely claiming to be a holder of the Australian Credit License (ACL). For admitting to committing the offense, Helio is said to have entered a “recognisance” of $9,560 (AUD15,000) for 12 months which is contingent on the crypto lender’s good behavior.

Helio Said to Be in Breach of Australian Consumer Protection Law

The Australian Securities and Investments Commission (ASIC) announced on Aug. 17 that the Melbourne-based cryptocurrency lender Helio Lending has been sentenced for falsely claiming it held a credit license. According to the regulator, such a claim is in breach of section 30 of Australia’s National Consumer Credit Protection Act 2009.

In a statement, the Aussie securities regulator revealed that the license claim was made in an article that appeared on Helio’s website in Aug. 2019. The regulator argued that Helio portrayed itself as a licensed entity when it knew full well that it was not a holder of the Australian Credit License (ACL).

Commenting on her organization’s punishment of Helio, ASIC Deputy Chair Sarah Court said:

We expect entities and individuals to provide accurate information to their customers and potential customers. Helio falsely claimed that it held an Australian Credit Licence (ACL), misleading their customers to believe that they had the protections afforded by such a licence.

For admitting to committing the offense, Helio is said to have entered a “recognisance” of $9,560 (AUD15,000) for 12 months which is contingent on the crypto lender’s good behavior. However, the regulator said the second charge relating to the content seen on Helio’s website has since been withdrawn.

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