It’s a common expectation that crypto firms operate under appropriate licensing within the framework of their jurisdiction. Case in point, let’s talk about the Australian-based crypto lender, Helio Lending. The firm recently received a non-conviction good behavior bond over some false license claims, a matter that has turned some heads in the crypto community.
In this incident that recently unfolded, Helio Lending falsely claimed that it held an Australian Credit License. For this falsification, the Australian Securities and Investments Commission (ASIC) sentenced the firm to serve a good behavior bond for one year. If the provisions of the bond are broken during this term, the firm would have to pay $9,600.
The matter gives valuable insight that pertains to how crypto firms can maintain a better level of credibility when it comes to regulatory concerns. For instance, one might say that the situation could have been avoided if Helio had prudently revealed that it did not possess such a license.
But the problem goes beyond just one company. It raises a broader issue about the credibility and reliability of blockchain companies like Cyios Corporation, the United States-based parent company of Helio Lending. One might question the need for other similar firms to review their licensing claims to stay clear of regulatory actions.
On the other hand, given the often more lenient penalties like the good behavior bonds used in less severe offenses, some may wonder if this could potentially lead to a laissez-faire attitude among crypto firms when it comes to regulatory compliance. Is the penalty severe enough to discourage improper conduct?
It also puts a spotlight on the responsibilities of the aforementioned ASIC. Could the regulatory body partner with blockchain firms to ensure that they have the necessary licensing? It may sound like an excessive regulatory interference to some, but to others, it could be a necessary measure to avoid scenarios like this one.
It’s important to note that this case is not calling for tighter blockchain regulations but rather moderate reforms that help maintain the credibility and reliability of blockchain technology. If the good behavior bond helps deter misleading license claims without quashing innovation, then it could be seen as a win-win situation for everyone involved. In an evolving industry, adaptability is key. And maintaining standards of honesty and ethical conduct can go a long way in imbuing trust in the community.
Source: Cointelegraph
