The company disagrees with ASIC’s claim that a crypto-yielding product from Finder’s registered exchange was operating illegally, but the company has not disclosed whether or not it intends to contest the litigation.

Finder.com, a website that compares different financial products, is facing legal action from Australia’s Financial Services Authority over allegations that the company offered a bitcoin-yielding contract without the necessary license.

It is the second local provider of a crypto performance product that the regulator has taken action against, following the action that was taken against Block Earner in November.

On December 15, the Australian Securities and Investments Commission (ASIC) launched legal action against a locally registered digital currency exchange that was a subsidiary of Finder.com known as Finder Wallet.

Finder Earn provided its clients with the opportunity to earn an annual return of between 4.01% and 6.01% in exchange for depositing the True AUD stablecoin, which was pegged to the Australian dollar (TAUD).

The Australian Securities and Investments Commission (ASIC) said the product in question was a bond, which is a kind of unsecured loan instrument that requires a license from the Australian Financial Services (AFS).

Finder disagrees with this assessment.

The Finder.com representative claimed that the decision to stop selling the product was a strategic business decision made due to rising interest rates and was not the result of regulatory scrutiny.

Asked if he would oppose the lawsuit, Finder said he would refrain from commenting further as the case is still pending before the courts.

In the announcement, Sarah Court, Vice President of ASIC, stated that the organization is sending a clear message to the industry, and that message is that the mere fact that an offer involves a crypto-related product does not guarantee that it will be left out of the regime. current regulatory.

It is the third time in as many months that ASIC has taken legal action against crypto financial products and the companies that supply them, and this time it is a lawsuit against Finder.com.

In October, the regulator filed a lawsuit against financial services company BPS Financial for unauthorized activities linked to its Qoin token. The allegations against the company include allegedly misleading claims that Qoin was regulated in Australia.

In November, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against fintech company Block Earner for trading three cryptocurrency-backed fixed-return products without having the proper AFS license.

Reacting to the lawsuit, the Block Earner CEO lashed out at the ambiguity that exists within the country’s regulatory framework for financial licences.