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Tuesday, December 6, 2022

ASIC In Legal Battle

ASIC has just announced it is suing a cryptocurrency firm called BPS Financial Ltd. The regulator alleges the Melbourne-based business was making misleading statements about its ties to Visa and MasterCard, among other deceptive claims. “ASIC’s action shows that we will use our regulatory powers to ensure businesses do not mislead consumers through their marketing and advertising,” said commissioner Cathie Armour in a statement on Wednesday.

In a statement, ASIC Commissioner Cathie Armour noted that BPS had received a warning from the regulator in December 2017 over misleading marketing.

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“ASIC is concerned that BPS has continued to engage in this conduct despite being advised of its obligations and risks associated with misleading or deceptive conduct,” she said. “This is particularly concerning given that many consumers may be unaware of the risks associated with cryptocurrencies and are more likely to rely on representations made by financial institutions.”

ASIC Sues BPS Financial

However, questions and complaints from users on social media forums such as Reddit soon began to appear. The complaints were largely aimed at Bps Financial, which ASIC alleges was operating a misleading cryptocurrency trading platform. The company used the website www.britishpoundsterlingcrypto.com to promote its product, which it described as “the first UK Pound Sterling backed cryptocurrency”. The site also claimed that users would receive $1 per £1 invested in Bitcoin each day for five days after making their initial deposit – something Bps Financial said was achieved through a proprietary algorithm and trading bot technology that used interbank rates to determine profits for investors.

Meanwhile, crypto-related regulatory activity in Australia continues apace, with domestic exchanges being forced to adopt strict policy amendments such as mandatory customer ID submission. In addition, ASIC has taken action against BPS Financial Services Pty Ltd (BPS), a non-bank financial services provider (NBFSP) offering cryptocurrency investment services and operating a digital wallet service.

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