Australian Court Penalizes BPS Financial Over Crypto Qoin Wallet Promotion
Australia's Federal Court has imposed a AU$14 million ($9.6 million) penalty on BPS Financial for operating and promoting its Qoin Wallet without proper licensing. The Gold Coast-based firm, which owns Block Trade Exchange, misled investors by claiming its Qoin token could be exchanged for Australian dollars and falsely asserted regulatory compliance.
ASIC Chair Joe Longo emphasized the necessity of appropriate licenses for crypto products, underscoring the regulator's commitment to enforcing compliance. The court found BPS Financial engaged in unlicensed conduct for nearly three years, issuing the Qoin token and promoting its wallet with false representations.
The penalty, split into two charges, includes AU$12 million for unlicensed conduct and AU$2 million for misleading statements. This ruling marks a significant enforcement action in Australia's evolving crypto regulatory landscape.
