ASIC action results in $14m crypto penalties
The crypto sector has received a strong message as a result of BPS Financial being penalised to the tune of $14 million over its promotion and operation of its Qoin Wallet product.
The Australian Securities and Investments Commission (ASIC) announced the Federal Court decision today, noting that BPS Financial promoted the Qoin Wallet as a non-cash payment facility linked to a digital crypto token called Qoin.
The ASIC statement said that in 2024, the Federal Court found that BPS Financial engaged in unlicensed conduct over almost three years by issuing and providing financial advice about the Qoin Wallet without holding an Australian Financial Services License. The Court also found that BPS Financial engaged in misleading and deceptive conduct when it made several false and misleading representations about the Qoin Wallet.
It said that in 2025, the Full Federal Court found that BPS Financial engaged in unlicensed conduct over an additional 10-month period because BPS could not rely on the ‘authorised representative’ exemption under the Corporations Act when issuing the Qoin Wallet.
ASIC said the Court has today ordered BPS Financial is to pay total penalties of $14 million, made up of:
- $2 million for unlicensed conduct, and
- $12 million for misleading and deceptive conduct in connection with making false and misleading statements.
ASIC Chair Joe Longo said the outcome sent a strong message to the crypto industry.
“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.
“Given the nature of these products, providers must have the appropriate licenses and authorisations, and investors must be able to make decisions based on clear and correct statements, especially as crypto products can be highly volatile, inherently risky and complex.
“ASIC will not hesitate to act where investors are potentially exposed to unlicensed financial advice, misleading and deceptive conduct, and risky products.”
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