If Helio Lending manages to maintain good behavior for a year, ASIC will not take any further enforcement actions.
The Australia-based crypto firm Helio Lending found itself facing consequences for inappropriately claiming possession of a local credit license.
The Australian Securities and Investments Commission (ASIC), on August 17th, announced that it had handed down a non-conviction good behavior bond to Helio Lending. This bond, amounting to 15,000 Australian dollars (roughly $9,600), is conditioned upon the firm maintaining good behavior for the upcoming year.
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It is worth noting that, typically, good behavior bonds are issued for less harmful offenses. The implications of a non-conviction good behavior bond for Helio suggest that the firm will only face this conviction if they adhere to their bond rules.
It's worth noting that this outcome is substantially more lenient than the potential maximum penalty of $160,000 that Helio could have faced.
The contention arose from a 2019 news article featured on Helio's website, where the firm inaccurately asserted possession of an Australian credit license. Helio contended that they acquired the license after buying Cash Flow Investments, which possessed regulatory approval.
Following the allegations, Helio Lending acknowledged its error and entered a guilty plea. Due to this, the charges around the false license representation on their website were dropped.
This isn't the only instance of ASIC turning its attention to the crypto domain. In their recent endeavors, they lodged a case against the trading entity eToro. ASIC claimed that eToro's vetting procedures, especially when offering leveraged derivative contracts to investors, were inadequate.
Helio Lending's case underscores the importance of ensuring strict compliance, especially when making claims associated with licenses or permissions. The ASIC, it seems, remains vigilant in safeguarding the interests of the public and maintaining transparency in this burgeoning sector.
