The Australian Securities and Investments Commission (ASIC) launched penalty proceedings against Finder Wallet Pty Ltd., a subsidiary of Finder.com, a popular Australian price checker.
The company is accused of providing financial services without the required licence, an infringement of product information requirements, and failure to comply with design and distribution obligations with regard to crypto-asset-related product Finder Earn, offered by Finder Wallet.
Finder Earn allowed clients to invest in stablecoin denominated in Australian dollars called TAUD. In exchange for the use of client’s funds, Finder Wallet promised annual return on investment at 4.01%, in some cases 6.01%.
In ASIC’s opinion, Finder Earn was actually a debenture and offering it without a licence to provide financial services exposed consumers to potential harm, for example the probability that they were offered a product that was not suitable for them.
The action against Finder Wallet is the third recent action taken by ASIC against a company offering a crypto-asset-related product which, in ASIC’s opinion, should be treated as financial product.
In her commentary on the case, ASIC Deputy Chair Sarah Court said: ‘Our message to industry is clear – just because an offer involves a crypto-asset-related product does not guarantee it will fall outside the current regulatory regime.’
To find out more about the case please go to:
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2022-releases/22-359mr-finder-wallet-sued-for-alleged-unlicensed-conduct-and-inadequate-risk-disclosure-over-finder-earn-product/