ASIC Issued A Legal Notice To Byte Power Group Limited

By Rishma Banerjee

The region’s securities regulator, Australian Securities and Investments Commission (ASIC) has issued a legal notice to Byte Power Group Limited, alleging that the it failed to comply with its continuos disclosure duties. The Australia-based digital assets exchange

which acts as a crypto trading venue has paid a fine of AU$33,000 (US$23,491).

According to sources, 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 back in October 2017.

The exchange claimed that the partner company was well equipped in the software development ecosystem, and added that a superior version will be launched before the end of 2017.

However, 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. They did this without formally informing the regulators of the new development.

ASIC made it clear the Byte Power should not have 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. Not conveying this information to the ASX was a step owing to infringement.

Despite the fact the fact that Byte Power has complied with ASIC by paying its penalty, the Australian Securities Exchange (ASX) is yet to Unban the firm.

Byte Power paid the fine, but asserted that this did not indicate any admission of guilt or liability.

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

The Australian regulators are taking strong steps to weed out any lack of transparency in the crypto market thereby making it more efficient and profitable for the investors.