• ASIC fined BPS Financial AU$14M for unlicensed crypto operations and misleading claims.
  • The case highlights Australia’s tougher stance on crypto regulation.

The Australian Securities and Investments Commission (ASIC) confirmed on Tuesday that the Federal Court of Australia has ordered BPS Financial to pay $9.6 million in Penalties. BPS Financial owns and operates Block Trade Exchange and promotes a crypto product called Qoin, along with the digital wallet known as Qoin wallet. The company markets the Qoin as a payment token and claims that the Qoin could be exchanged for Australian dollars through other platforms. They also claimed that the Qoin wallet and the company were regulated in Australia.

Court Rules Qoin Claims Were Misleading and Unlicensed

ASIC first launched court proceedings against BPS Financial in 2022, alleging that the firm operates without holding a license and made false statements about its crypto products, crossing regulatory boundaries while marketing digital assets to consumers. However, the court found that BPS Financial did not hold a license, and there was no reliable, regulated market allowing Qoin to be exchanged for Australian dollars. They also found that consumers were given the false impression of liquidity and regulatory protection. 

The Federal Court ruled that BPS Financial had engaged in unlicensed conduct for 3 years in 2024, covering the issuance of the Qoin crypto and promotion of the Qoin wallet. The court also determined that the firm made multiple misleading and deceptive representations, breaching Australian financial law.

The Court orders BPS Financial to pay AUD $12 million for misleading statements and AUD $12 million for operating without the required license. ASIC Chair Joe Longo said that the punishment sends a strong warning to the crypto industry. He stated that the companies offering crypto products must follow the law and hold proper licenses. 

ASIC said that the Case highlights the ongoing risks in the crypto market. The regulator also noted that the crypto assets remain a major focus in the 2026 risk outlook, and it is arguing for clearer licensing rules to better protect consumers.  

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