The Australian Securities and Investments Commission has urged buy now pay later (BNPL) providers such as Zip (ASX:ZIP), Plenti Group (ASX:PLT) and Block (ASX:XYZ) to secure a credit licence, warning that failure to do so could lead to unlicensed operation, according to a Friday statement by the regulator.
Under new laws set for implementation on June 10, BNPLs are now defined as low-cost credit contracts and will fall under the National Consumer Credit Protection Act, aligning them with other credit products.
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