The Australian Federal Court has sided with the Australian Securities and Investments Commission (ASIC) in a case against BPS Financial, an unlicensed cryptocurrency platform, accused of deceiving customers with its Qoin Wallet.

BPS Financial falsely presented the Qoin Wallet as a non-cash payment facility using a crypto-asset token called 'Qoin', which violated the Corporations Act.

ASIC Chair Joe Longo stressed the necessity for crypto platforms to obtain proper licenses and permissions, and to provide transparent and accurate information to investors.

The recent ruling by the Australian Federal Court against BPS Financial's unlicensed Qoin Wallet underscores the significance of adhering to regulations in the crypto industry.

Unlicensed Qoin Wallet Misleading Customers

BPS Financial, a Gold Coast crypto promoter, allegedly violated the law by endorsing the unlicensed Qoin Wallet. The company misled customers by misrepresenting the Qoin Wallet as a licensed non-cash payment facility using a crypto-asset token known as 'Qoin'. This breach of the Corporations Act resulted in the Australian Federal Court ruling in favor of ASIC.

ASIC's Position on Crypto Regulation

ASIC Chair Joe Longo emphasized the importance of crypto platforms obtaining appropriate licenses and permissions. He cautioned against the highly volatile and risky nature of crypto assets, and reiterated ASIC's consistent enforcement actions against unlicensed crypto businesses. This case demonstrates ASIC's dedication to ensuring regulatory compliance in the crypto industry.

Qoin's Dubious Launch and ASIC's Allegations

Qoin was introduced in Australia in early 2020, promising significant returns for investors. However, concerns arose regarding possible misinformation and difficulties in cashing out. ASIC initiated legal action, accusing Qoin advertisements of misleading consumers by suggesting they could easily exchange Qoin for other currencies and that numerous merchants accepted it. More than 79,000 individuals and entities who purchased Qoin may have been misled into thinking the product was compliant with financial services regulations.

In conclusion, the Australian Federal Court's ruling against BPS Financial's unlicensed Qoin Wallet highlights the importance of regulatory compliance in the crypto industry. Crypto platforms must possess proper licenses and permissions, and provide clear and accurate information to investors. This case also underscores the risks associated with investing in crypto assets, and the crucial role of regulatory authorities like ASIC in safeguarding investors.