ASIC is suing Finder Wallet for providing unlicensed financial services.
ASIC claims its Finder Earn product is much like a corporate bond.
Finder Wallet stopped serving customers last month.
ASIC Sues Finder Wallet for Offering Unlicensed Services
The Australian Securities and Investments Commission (ASIC) announced Thursday that it has sued Finder Wallet, a subsidiary of comparison site Finder.com, over cryptocurrency-linked yield products.
Australia’s financial watchdog has revealed that it has sued the platform for alleged unauthorized conduct and improper risk disclosure.
ASIC is suing Finder Wallet for providing Finder Earn products offered between February and November 10, 2022. Finders will start using stablecoins as working capital.
Finder Wallet offered Australian users deposit interest rates of 4.01% and 6.01%. According to ASIC, Finder Earn is similar to a corporate bond and Finder Wallet must obtain the proper licenses before offering the product to Australians.
ASIC Vice-Chair Sarah Court said:
“This is ASIC’s third recent lawsuit against companies offering crypto-related products that we consider financial products. Just because it’s related to the , it doesn’t guarantee it will be out of the current regulatory regime.”
ASIC drops the hammer on FTX
ASIC is suing Finder Wallet even though the platform stopped offering the product on November 24th. Finder Wallet returned all funds to its customers after ASIC notified the company of its product concerns.
this latest cryptocurrency news It’s been a month since ASIC dropped the hammer on FTX. Last month, ASIC license suspension Issued to FTX Australia, the Australian division of the FTX Exchange.
The suspension follows the collapse of its parent company, the FTX cryptocurrency exchange.
The bear market continues to affect the operations of many cryptocurrency companies. Earlier this month, Australian cryptocurrency exchange Swyft 45% reduction in total workforce Earnings declined due to the bear market.