Australian regulator secures $9.7 million penalty against BPS Financial over Qoin Wallet violations
The Federal Court fined BPS Financial $14 million AUD ($9.7 million) for operating the Qoin Wallet scheme without a license and misleading consumers.Summary
Australia’s Federal Court imposed a total penalty of $14 million AUD ($9.7 million) on BPS Financial Pty Ltd, announced by ASIC. This penalty comprises $2 million AUD for operating without a license and $12 million AUD for deceptive representations made between January 2020 and mid-2023, during which BPS issued over 96,000 Qoin Wallets and generated significant revenue.
Justice Wendy Downes set the penalties to reflect the seriousness, noting the objective recklessness and inadequate compliance by BPS. ASIC Chair Joe Longo emphasized that the digital asset industry is on notice regarding ASIC's focus on misconduct.
In addition to the fine, BPS is permanently restrained from making false statements about Qoin Wallet metrics, is prohibited from operating a financial services business without a license for 10 years, and must publish an adverse publicity notice. This action aligns with ASIC's broader focus on regulatory boundaries amidst rapid innovation in digital assets, as Australia moves to formally incorporate crypto platforms into its financial licensing regime.
(Source：The Block)