- One of the customers of ASIC transferred about AU$2.2 million to buy bitcoin over the platform but didn’t get bitcoin ever.
- An updated guidance is being framed by the Australian regulators in which there is a demand for financial services licenses from the cryptocurrency exchanges.
- A customer reported a complaint of fraud and further regulatory proceedings were carried out on this basis.
The Australian Securities and Investments Commission (ASIC) has taken measures against Grant Colthup, ex-official of a crypto exchange for fraudulence. Colthup the ex-chief executive officer of ACCE Australia was accused of stealing about AU$2.2 million which accounts to about US$1.5 million from its customer, as reported in an announcement on October 22.
On October 21, the regulator made Colthup appear in the court by charging him with the case of fraud. After listening to the case, the court has decided to put off till 16 December of this year. It is noteworthy that the action has been taken after a rigorous regulatory investigation against Colthup.
The customer’s complaint
A cryptocurrency exchange, Mine Digital was operative starting from May 2019 to September 2022 by the Australian Securities and Investments Commission. One of the customers transferred about AU$2.2 million to buy bitcoin over the platform but didn’t get bitcoin ever. After this event, the customer reported a complaint of fraud and further regulatory proceedings were carried out on this basis.
The Australian regulatory body has claimed that the ex-executive has paid the body’s liabilities as well as bought cryptocurrency for others from that capital.
Before this ASIC has also filed a case against Block Earner, an all in one crypto app from Australia and demanded to charge a penalty. However, the court denied the demands of ASIC and claimed that the company was operating honestly and they were very careful while giving those products.
New regulations for license
The Securities and Investments Commission also disputed over the matter that it needs a financial services license. Finance Magnates, the world’s largest financial B2B publication has released a report in which it has mentioned that an updated guidance is being framed by the Australian regulators in which there is a demand for financial services licenses from the cryptocurrency exchanges.
The requirements to get a licensing in the current scenario will be increased drastically in the coming future and initially it will be applied to the cryptocurrency exchanges.
At the same time, a modification in the legislation of Australia has been made which has stretched out the powers of the Australian regulatory body to look after various capital market bodies such as financial market operators, benchmark administrators and many more.
