Author
Sujha Sundararajan
Author
Share
The Australian Securities and Investments Commission (ASIC) said Tuesday that a Federal Court has slapped AU$14 million ($9.6 million) on Gold Coast-based BPS Financial for operating and promoting its ‘Qoin Wallet’ crypto product.
BPS Financial, the owner and operator of Block Trade Exchange, touted a crypto token called ‘Qoin’ and promoted a “non-cash payment” wallet linked to it.
The corporate regulator launched its first court action against the firm in 2022, alleging unlicensed conduct and the misleading promotion of crypto assets.
BPS Financial claimed that its self-issued cryptocurrency Qoin could be swapped for Australian dollars through other exchanges. It also noted that the Qoin wallet and company were regulated. However, BPS Financial does not hold a license in Australia.
The Federal Court said in 2024 that the company was involved in unlicensed conduct over almost three years for issuing Qoin crypto and promoting its wallet.
BPS Financial to Pay Penalties for Unlicensed Conduct, Misleading Statements
Per the Tuesday statement, the firm additionally made several false and misleading representations about the Qoin Wallet.
“Given the nature of these products, providers must have the appropriate licenses and authorizations,” said ASIC Chair Joe Longo.
The Court has ordered BPS Financial to pay its AU$14 million, split into two, according to the charges. This includes a AU$12 million penalty for misleading statements and a AU$2 million for unlicensed conduct.
“The size of these penalties underscores the seriousness of BPS Financial’s misconduct and is intended to send a strong message of deterrence to the digital asset industry,” Longo added.
Aussie Places Crypto Regulation Gaps in 2026 Risk Outlook Plan
The ASIC released major 2026 risk report on Tuesday, highlighting that crypto assets continue to create risks, including with “unlicensed advice, misleading conduct, and the exploitation of unclear regulatory boundaries.”
The regulator noted that the government should determine whether a new asset class should be brought within a licensing regime.
“Ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026,” it added.
Credit: Source link
