By Staff Writer
Australia’s Federal Court has ordered digital currency payments provider BPS Financial to pay $9.7 million (AUD$14 million) in penalties after regulators alleged the firm unlawfully promoted and operated its Qoin Wallet product and misled the public about what the wallet and Qoin tokens could actually do.
The action was brought by the Australian Securities and Investments Commission (ASIC), which said the penalties reflect two core findings. First, that that BPS engaged in unlicensed conduct and second, that they made misleading or deceptive statements.
The court imposed $1.39 million for operating without an Australian Financial Services Licence for almost four years, and a further $8.31 million for misleading conduct tied to claims about the wallet’s functionality.
Alongside the fines, the court issued permanent injunctions preventing BPS from making false or misleading representations about the Qoin Wallet or Qoin tokens in the future.
The orders specifically restrict the company from overstating the number of wallet holders, implying that Qoin can be easily exchanged for fiat currency or other crypto-assets, or suggesting the product has received any form of government approval or official registration.
BPS has also been restrained for 10 years from carrying on a financial services business without the proper licence, and has been ordered to publish an adverse publicity notice across its platforms so that existing and prospective users are made aware of the court’s findings.
