ASIC Secures $14M Penalty Against Crypto Wallet Operator in Landmark Enforcement

Australia's financial regulator delivered a seismic blow to unlicensed crypto operations as the Federal Court imposed a $14 million penalty on BPS Financial for misconduct tied to its Qoin Wallet. The ruling marks ASIC's most aggressive enforcement action to date against a digital asset provider, with $2 million specifically levied for operating without a financial services license.

Court findings revealed systemic failures, including misleading claims about token functionality and fabricated regulatory approvals. Senior leadership oversight deficiencies compounded these violations, which spanned multiple years before ASIC's intervention. The $12 million balance of the penalty targets deceptive representations that exposed consumers to unsubstantiated risks.

This decision reverberates across Australia's crypto sector as regulators visibly tighten compliance screws. The 10-year operating ban against BPS establishes a stark precedent for unlicensed operators, coinciding with global efforts to rein in decentralized finance projects.