Flow

United

April

<ul class="list-ic vertical"> 
 <li> <span>1</span> <a>The Australian crypto-lending service Helio has been sentenced to a good behavior bond.&nbsp;</a> </li> 
 <li> <span>2</span> <a>As a result, many crypto users are keen to know about this “bond” and “crypto lending”.</a> </li> 
 <li> <span>3</span> <a>The Australian Securities and Investments Commission (ASIC) made false claims of holding licenses.</a> </li> 
</ul> 
<p>On 17 August 2023, Australia-based crypto lender Helio found itself in a soup. The service provider got a non-conviction good behavior bond for a year. Apparently, the bond was issued for false claiming of a local credit license. For the uninitiated, good behavior bond is prevalent in the Australian judicial system. Here’s an explainer that’ll make it clear.&nbsp;</p> 
<h2 class="wp-block-heading" id="strong-good-behavior-bond-strong"><strong>Good Behavior Bond</strong></h2> 
<p>It’s a non-custodial sentence that requires the offender to show good behavior for a certain duration. For that time, the concerned body assesses the conduct of the convict. It may require the offender to participate in rehabilitation, medical treatment, or community services. The judiciary may take stricter actions if the conditions remain are not met.&nbsp;</p> 
<h3 class="wp-block-heading" id="strong-why-is-helio-in-this-mess-strong"><strong>Why is Helio in This Mess?</strong></h3> 
<p>Helio is a subsidiary of a United States-based crypto holding company, Cyios Corporation. The latter is about to launch its own non-fungible token. In 2018, the lending service claimed that it had an Australian credit license. It said that it received the permit by buying Cash Flow Investments. The Australian Securities and Investments Commission (ASIC) charged Helio in April 2022.&nbsp;</p> 
<p>Apparently, Helio isn’t the only one indulging in the false-claiming acts. Last year, Finder.com offered a crypto yield-bearing product that was launched without a license. Recently, eToro made claims about offering derivatives but it didn’t have the rights to do it.&nbsp; The ASIC sued both companies soon after their claims.</p> 
<p>At this point, it is very important to understand how crypto lending works. Because in the future, more companies offering the same service. And they may all make the same mistake.</p> 
<h3 class="wp-block-heading" id="strong-a-deep-dive-into-crypto-lending-strong"><strong>A Deep Dive Into Crypto Lending</strong></h3> 
<p>As the word suggests, it’s how professional services lend digital assets to users. <a href="https://www.thecoinrepublic.com/2023/08/16/crypto-spaces-getting-lobby-group-to-liaison-with-regulators/" rel="noopener noreferrer nofollow">Crypto </a>providers make payments in cryptos. The deposited amount compounds on a daily, weekly, and monthly basis. Users can approach two types of lending services: centralized and decentralized. Both required borrowers to deposit collateral and offer high-interest rates. The interest may go up to 20% of the annual percentage yield (APY).</p> 
<p>The service enables the investors to borrow against deposited assets. They also allow the holders to earn rewards. The popularity of lending platforms skyrocketed in 2020. Backed by so many customers, it grew exponentially. Now, all these firms maintained two fundamentals. They earned interest on deposits and they also provided loans to their customers.&nbsp;</p> 
<p>The deposit accounts act like a bank account. They receive deposits and pay interest to the users. The service providers can use the deposited amount to cater to more borrowers. They can also use these funds for other investment purposes. Crypto lenders typically offer collateralized lending products. They require users to deposit some form of collateral to borrow money.</p> 
<h4 class="wp-block-heading"><strong>Conclusion</strong></h4> 
<p>With a license, a crypto lending service can do a lot more. It gives them the power to operate with full power. However, the regulators have not started sanctioning them to crypto entities. So, for the firms, it is best to play by the rules right now.&nbsp; As the world’s getting keen to embrace crypto, the associated services also get opportunities to expand.&nbsp;</p>

Bond Sentence To Helio Gets People Mull Over Crypto Frauds Again

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Thecoinrepublic.com

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