Overview
- Justice Kylie Downes found BPS operated the Qoin Wallet as a financial services business without an Australian Financial Services Licence and made false claims about approval, liquidity, and merchant acceptance.
- The court ordered BPS to publish corrective notices on its app and website and placed permanent restraints on misleading representations about exchangeability, merchant numbers, and official approval.
- ASIC’s 2022 civil action led to the penalties, with the judge describing BPS’s conduct as serious and condemnable and noting senior management involvement and weak compliance systems.
- During 2020 to mid-2023, BPS issued more than 96,000 Qoin wallets and generated over A$42 million from Qoin token sales, according to court findings.
- ASIC chair Joe Longo said the outcome is intended as a strong warning to crypto providers, reinforcing enforcement priorities even as the regulator offers targeted licensing relief for some stablecoin and wrapped-asset arrangements.