The Australian authorities are working diligently to keep a firm check on cryptocurrencies and all related services including major exchanges and brokerage firms. Australian Securities and Investments Commission (ASIC) has now taken up Byte Power to slap a band coupled with a fine on the firm.
The thirty-three thousand Australian dollar fine on the Byte Power exchange came after the company failed to deliver its promises to the stakeholders. The company has been barred from operations pending an investigation into its operations.
The fine has been made to the Australian Securities and Investments Commission (ASIC), the authority responsible for regulating all cryptocurrency related issues. Whereas, the Australian Securities Exchange (ASX) is holding the practical ban on the firm.
The irregularities were found in the upcoming exchange plan that was announced to the shareholders back in October of 2017. The company had actively hired a Singaporean company Soar Labs to develop their next big exchange. At the time of hiring Soar Labs was presented as a competent vendor, which later proved to be a false claim.
Bye Power decided to change their vendor in December 2018, after Soar Labs had failed to meet the development needs; however, it failed to follow the “continuous disclosure obligations.”
The clause required Byte Power to disclose the ongoing developments with regards to the change of vendor. The failure not only resulted in a hefty fine but also a ban on operations until the ASX complete a thorough investigation into the operational procedures, development procedures and the legal stature.