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Australia: Regulators Slap AUD 33k Fine on Byte Power Cryptocurrency Exchange for Irregularities

Australia: Regulators Slap AUD 33k Fine on Byte Power Cryptocurrency Exchange for Irregularities

Reading Time: 2 minutes by on February 16, 2019 Exchange, News
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Australian Securities and Investments Commission (ASIC), the region’s securities regulator, has issued an infringement notice to Byte Power Group Limited, a digital assets exchange, alleging that the crypto trading venue failed to comply with its continuous disclosure duties and the regulated exchange has now paid a penalty of AUD 33,000 reports ZDNet on February 13, 2019.

ASIC Hammer Falls on Byte Power Exchange

Per sources close to the matter, in October 2017, Byte Power Group Limited told its shareholders that it had partnered with a highly experienced Singapore-based firm, Soar Labs Pte Ltd, for the development of a new cryptocurrency exchange.

The exchange claimed that its Singaporean partner was well equipped in the software development ecosystem, adding that the alpha version of the system would go live before the end of 2017.

However, ASIC has alleged that by December 2018, Soar Labs had still not developed the cryptocurrency exchange for Byte Power, forcing the latter to approach other crypto exchange software providers for assistance without formally inform the regulators of the new development.

A Breach of Continuous Disclosure Obligations

Against that backdrop, ASIC has made it clear that Byte Power ran afoul of its statutes by failing to inform the ASX that it had contracted a new firm to develop the software for its exchange, since Soar Labs were not as competent as earlier claimed and as such, the project would be pushed back to a later date.

Although Byte Power has paid a penalty of AUD 33,000, the firm has reportedly declared in a statement that complying with the infringement notice is not an admission of liability.

ASX Still Not Convinced

Despite the fact the fact that Byte Power has complied with ASIC by paying its penalty, it’s worth noting that the battle is still far from over as the Australian Securities Exchange (ASX) is yet to Unban the firm.

According to the exchange, the ASX is unsatisfied with its disclosure as regards the development of its crypto exchange, the operation of its crypto trading venue and the legality of the BPX loyalty tokens.

Against that backdrop, the ASX has reportedly hinted that Byte Power’s securities will remain suspended from trading until all investigations have been completed.

ASIC has also barred the firm from conducting fundraisers without full disclosures using a full form prospectus until December 12, 2019.

Australian regulators have been working round the clock to sanitize its cryptospace and rid it of bad actors.

On January 9, 2019, BTCManager informed that Australian authorities had banned BitConnect promoter, John Bigatton from travelling out of the state and all his assets have also been frozen.  


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