Melbourne-based Helio Lending Sentenced to Non-Conviction Bond for False Claims of Holding an Australian Credit License
A former cryptocurrency lender, Helio Lending, based in Melbourne, has been sentenced to a non-conviction bond. The firm falsely claimed to hold an Australian Credit License (ACL). Here are the key points:
1. Helio offered crypto-backed loans to consumers using digital assets as collateral.
2. The firm claimed in an August 2019 news article that it held an ACL 391330 credit license.
3. Helio has submitted to a $15,000 recognizance for one year on the condition of good behavior.
4. If Helio breaks the terms, it will forfeit the $15,000 held in security.
5. The Australian Credit License (ACL) scheme was introduced in 2009, requiring all lenders, including crypto lenders, to hold one.
Australian Government Cracks Down on False Claims Regarding Credit Licenses
The Australian government expects accurate information from entities and individuals regarding credit licenses. Helio’s false claim misled customers into believing they had the protections afforded by an Australian Credit License. The Australian Securities and Investment Commission (ASIC) Deputy Chair, Sarah Court, emphasized the importance of providing accurate information.
Growth in Crypto Lending and the Rise of NFT Loans
The year 2023 has seen an increase in crypto lending, with various players entering the market. Notable examples include DeFi protocols Aave and Compound. Additionally, Bitget introduced its Crypto Loans product, and Blend launched an NFT lending and borrowing service called Blur. Blend saw immediate popularity, with users borrowing a significant amount against their assets within ten days.
Hot Take: False Claims of Holding a Credit License Pose Risks in the Crypto Lending Industry
The sentencing of Helio Lending highlights the importance of transparency and accuracy in the crypto lending industry. False claims regarding credit licenses can mislead customers and put their assets and investments at risk. It is crucial for regulators and consumers to remain vigilant and ensure that lenders comply with the necessary licensing requirements to protect the interests of all parties involved.
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