Court Slams BPS Financial Over Crypto Qoin Wallet Promotion - Australian Regulators Draw Line in Digital Sand

Another crypto project just got a reality check from the legal system. An Australian court has dropped the hammer on BPS Financial, penalizing the firm for its promotion of the Qoin wallet. This isn't just a slap on the wrist—it's a signal to the entire digital asset space about where regulators are drawing the line.

The Gavel Comes Down

Forget 'move fast and break things.' This ruling shows that breaking financial promotion rules will get you broken by the courts. The details are still emerging, but the message is crystal clear: marketing a crypto wallet with misleading promises carries real, tangible consequences. It's a landmark moment for Australia's approach to digital asset oversight.

Why This Matters for Crypto's Future

This case isn't happening in a vacuum. It's part of a global trend where watchdogs are shifting from curious observers to active referees. For every legitimate builder creating transformative DeFi protocols, there's a promoter pushing questionable schemes—and the gap between them is finally being enforced. Smart regulation doesn't stifle innovation; it weeds out the bad actors so the real tech can thrive. After all, what's more bullish for crypto's long-term adoption than cleaning up its own backyard?

The bottom line? The wild west days of saying anything to sell a wallet are over. The market is maturing, and with that comes accountability. It's a necessary, if painful, step toward mainstream legitimacy—and a stark reminder that in finance, even the decentralized kind, the promises you make had better be the ones you can keep. Unless, of course, you enjoy courtroom drama more than market gains.

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.