The Australian Federal Court has fined BPS Financial Pty Ltd a total of AUD 14 million (approximately USD 9.7 million) for operating the Qoin Wallet program without a license and providing misleading information to consumers. According to the Australian Securities and Investments Commission (ASIC), the penalties include AUD 2 million for unlicensed business conduct and AUD 12 million for false statements.
The violations occurred from January 2020 to mid-2023, during which BPS issued over 96,000 Qoin wallets and earned more than AUD 42 million from token sales. Previously, the court had determined that BPS did not qualify for the “authorized representative” exemption under corporate law.
In addition to the monetary fine, BPS is banned from providing unlicensed financial services for 10 years, required to publish adverse notices, and will bear most of the legal costs. ASIC emphasized that this is a strong warning to the digital asset industry, as Australia is tightening licensing regulations for crypto platforms.
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