Quick Breakdown
- $9.3M penalty: BPS fined for unlicensed operations and misleading claims tied to the Qoin Wallet
- 10-year ban: Company barred from offering financial services without a licence
- Regulatory warning: ASIC reinforces strict licensing and disclosure rules for crypto products
Australia’s corporate watchdog has secured a major legal win against BPS Financial Pty Ltd, with the Federal Court ordering the firm to pay 14 million Australian dollars ($9.3 million) for unlawfully promoting and operating its crypto-linked Qoin Wallet.
The decision caps a multi-year case brought by the Australian Securities and Investments Commission (ASIC), which accused BPS of running an unlicensed financial services business and misleading users about the nature and approval status of its product.
Court finds serious breaches of financial laws
In a statement released Tuesday, ASIC said the court found BPS had issued and promoted the Qoin Wallet, marketed as a non-cash payment facility tied to the Qoin digital token, without holding an Australian Financial Services Licence.
The violations occurred between January 2020 and mid-2023, in breach of the Corporations Act.
ASIC Chair Joe Longo said the ruling sends a strong signal to crypto and fintech firms operating in Australia.
“Providers must hold the right licences and make accurate disclosures,” Longo said, noting that crypto products are often volatile, complex and risky for investors.
Heavy penalties and long-term restrictions
The court imposed $1.3 million in penalties for unlicensed conduct and a further $8 million for misleading and deceptive representations. Judge Downes described BPS’s conduct as “serious and unlawful,” pointing to senior management involvement and weak compliance controls.
Beyond the fines, BPS has been banned from operating a financial services business for the next 10 years without a licence. The company must also publish court-ordered notices on its Qoin Wallet app and website and cover most of ASIC’s legal costs.
The ruling follows earlier judgments in 2024 upheld on appeal in 2025, which found BPS made false claims that Qoin was officially approved, easily exchangeable for fiat or other crypto assets, and widely accepted by merchants.
Meanwhile, Australia’s financial regulator took a decisive step toward shaping the country’s crypto landscape, allowing intermediaries to distribute licensed stablecoins without needing a separate financial services license.
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