ASIC asserts that Finder’s registered cryptocurrency exchange is illegally operating a crypto yield-bearing product. The company disagrees, but has not stated whether it will contest the litigation.
Finder.com, a site that compares different financial products is under threat from Australia’s Financial Services Authority. It was accused of selling a bitcoin yield-bearing deal without the license.
After Block Earner, the regulator took action against Block Earner.
The Australian Securities and Investments Commission initiated legal proceedings against a locally registered digital currency trading platform that was a subsidiary company of Finder.com. They are now known as Finder Wallet.
Finder Earn allowed its customers to earn an annual income of between 4.01% & 6.01% for depositing the stablecoin True AUD which was tied with the Australian dollar (TAUD).
According to the Australian Securities and Investments Commission, the product was a debenture. This is an unsecured loan instrument and requires a license from Australian Financial Services (AFS).
This evaluation was not approved by Finder.
Finder.com representative stated that the decision not to sell the product was a business strategy decision due to rising interest rates, and not a result of regulatory scrutiny.
When asked if it would object to the litigation, Finder stated that it would refrain form making further comments as the case remains pending before the courts.
Sarah Court, ASIC’s vice-chair, stated in the announcement that ASIC was sending a clear message. It is stating that even though an offer may involve a crypto-asset product, it does not necessarily mean that it will be subject to current regulations.
ASIC is suing Finder.com for allegedly supplying crypto financial products. This is the third such legal action in three months.
The regulator filed a suit against BPS Financial, a financial services company, in October for illegal activities related to Qoin token. The company was accused of misleadingly claiming that Qoin is regulated in Australia.
The Australian Securities and Investments Commission (ASIC), filed a lawsuit against Block Earner in November for marketing three fixed-yield products that were crypto-backed without obtaining an AFS license.
Block Earner’s CEO reacted to the lawsuit by blaming the lack of clarity in the country’s financial licensing regulatory framework.