Australia’s latest enforcement against BPS Financial over its Qoin Wallet marks a turning point for crypto oversight, with the asic penalty underscoring rising compliance expectations.
Federal Court imposes $14 million sanction on BPS
The Federal Court ordered BPS Financial to pay a total of $14 million in penalties after finding serious misconduct linked to its Qoin Wallet product. Moreover, the ruling comes as regulators intensify pressure on the digital asset sector in Australia.
ASIC obtained judgment after the Court found BPS had operated the Qoin Wallet without the required financial services licence. The Court also concluded that BPS misled users with false claims about token functionality and service approvals. According to ASIC, this conduct spanned multiple years and exposed consumers to unsupported statements.
The overall penalty included $2 million for unlicensed conduct, which the Court said satisfied the objective of deterrence. However, the remaining $12 million related to misleading and deceptive representations tied directly to the Qoin Wallet. ASIC stressed that senior leadership had overseen a system with weak compliance controls throughout this period.
Earlier findings in 2024 and 2025 confirmed that BPS issued and promoted the Qoin Wallet despite lacking required licensing obligations. The Court determined the company could not rely on any exemptions within the Corporations Act. That said, ASIC argued that these rulings revealed a consistent pattern of non-compliance that demanded significant corrective action.
Long-term restrictions and corrective measures
The Court imposed strict, long-term restrictions to prevent further breaches by BPS. It banned the company from operating any financial services business without an Australian licence for 10 years. Furthermore, ASIC obtained orders requiring BPS to publish corrective notices on both its app and website to inform users of prior misconduct.
The judgment also mandated permanent restraints on making misleading claims about token exchangeability and wallet registration. In addition, BPS must not misrepresent merchant numbers or imply any form of official approvals where none exist. ASIC also secured recovery of most legal costs associated with the case, reinforcing the financial impact.
These restrictions are intended to curb future risks and ensure clearer disclosures in digital asset offerings. The Court cited objective recklessness in BPS’s conduct and highlighted the need for higher standards across the crypto sector. Moreover, ASIC reiterated that the ruling sets a benchmark for expected behavior when promoting complex crypto products.
In the broader enforcement narrative, this asic penalty sits alongside recent actions targeting misleading crypto claims and unlicensed services. However, the scale of the sanction and the ten year ban underline the regulator’s willingness to pursue aggressive remedies where consumer harm is evident.
Regulatory context and impact on the crypto industry
ASIC has stepped up scrutiny of digital asset businesses as new crypto and token-based products enter the market. Recently, the regulator introduced targeted licensing relief for stablecoins and wrapped assets, aiming to streamline compliant distribution while preserving investor protections. However, ASIC has made clear that enforcement remains central whenever misconduct threatens market clarity or consumer confidence.
The agency continues to flag risks tied to opaque structures, weak internal controls and complex product designs. Its latest annual outlook identified digital asset oversight as a core supervisory priority in 2026. Moreover, ASIC has signalled ongoing monitoring of firms that operate payment, wallet or token frameworks without adequate governance.
BPS has become a significant test case for how Australian courts handle unlicensed crypto operations and misleading promotions. The ruling confirmed that promotional statements about token features, exchangeability and merchant acceptance must align with regulatory standards and accurate service descriptions. In that context, the asic penalty also strengthens ASIC’s mandate to enforce obligations across evolving financial technologies.
Overall, the outcome delivers a $14 million blow to BPS Financial and sends a broader warning across crypto compliance Australia. Market participants face a clearer message: unlicensed activity and misrepresentations around digital assets can trigger substantial financial sanctions and long-term restrictions.
Source: https://en.cryptonomist.ch/2026/01/27/asic-penalty-bps-australia/