Australia Fines BPS Financial A$14M Over Qoin Wallet Misconduct

Highlights:

• Australia has fined BPS Financial after the court found years of unlicensed Qoin Wallet activity.
• The Federal Court noted that BPS misled users about approval and token use.
• ASIC has stepped up enforcement across crypto exchanges and market infrastructure firms.

Australia’s Federal Court has ordered BPS Financial Pty Ltd to pay A$14 million over misconduct linked to its Qoin Wallet product. The Australian Securities and Investments Commission pursued the case after reviewing the company’s conduct across several years. The court found that BPS operated a financial services business without holding the required licence. Judges said the misconduct spanned the period from January 2020 to mid-2023.

Australian Court Penalizes BPS Financial Over #Crypto Qoin Wallet Promotion

The Australian Securities and Investments Commission (ASIC) said Tuesday that a Federal Court has slapped AU$14 million ($9.6 million) on Gold Coast-based BPS Financial for operating and promoting its… pic.twitter.com/RaNNxG7v89

— CryptOpus (@ImCryptOpus) January 27, 2026

BPS promoted the Qoin Wallet as a non-cash payment facility linked to a digital token known as Qoin. During that period, the company issued the product and provided financial advice to users. The court found that BPS did so without holding an Australian Financial Services Licence. Judges ruled that the conduct breached obligations under the Corporations Act.

The court imposed A$2 million in penalties for unlicensed conduct. It also imposed A$12 million for misleading and deceptive representations. Justice Downes described the conduct as serious and unlawful. She said senior management took part in decisions connected to the promotion of the product.

The judgment detailed failures within the company’s compliance framework. Justice Downes said internal systems failed to prevent repeated breaches over an extended period. The court noted that the representations reached consumers through official company channels. ASIC said the proceedings focused on the accuracy of statements made to users and merchants.

Australia Fines BPS Financial After ASIC Court Win

The Federal Court found in 2024 that BPS made false statements about approval and registration status. The judges additionally dismissed the argument that Qoin tokens were easily convertible to fiat currency or other cryptocurrencies. The court found that the company had exaggerated the amount of merchant acceptance.

The Full Federal Court extended the unlicensed conduct period in 2025 by a further ten months. The judges held that BPS was not allowed to invoke the authorized representative exemption. The court declared that the exemption was not applicable to the manner in which the company distributed the product. That decision helped clarify licensing requirements.

ASIC Chair Joe Longo addressed the outcome following the decision. He said investors require clear and accurate information when assessing financial products. Joe referred to risks tied to crypto-linked offerings. He said misleading representations can distort decisions made by retail users.

Courts have reached similar conclusions in other ASIC enforcement actions. The Federal Court found that Bit Trade, the operator of Kraken in Australia, failed to meet design and distribution obligations. The court also ruled that Bit Trade operated margin trading products without holding the proper licence.

ASIC has also taken action against Binance Australia Derivatives. The regulator alleged the firm misclassified 505 retail investors as wholesale clients. ASIC said the misclassification affected 83% of its Australian customer base. The proceedings focused on access to consumer protections under financial law.

Court Orders And Next Steps for ASIC

The Federal Court imposed several non-monetary orders against BPS Financial alongside the financial penalties. The ruling banned the company from operating a financial services business without a licence for ten years. The court also required adverse publicity notices on the Qoin Wallet application and website. The judges ordered BPS to pay most of ASIC’s legal costs.

The court permanently restrained BPS from making specific representations. These restraints cover claims about official approval and registration status. They also cover statements related to token exchangeability and wallet adoption figures.

ASIC has continued enforcement activity across financial markets. The regulator has sued ASX over statements tied to its abandoned CHESS blockchain replacement project. ASIC alleged misleading disclosures about development progress and expected launch timelines.

ASIC has also raised concerns about Bitget’s activities in Australia. The regulator said the exchange promoted futures products offering leverage of up to 125:1. ASIC said the promotions targeted Australian investors without holding the required licence. The regulator has listed digital asset regulatory gaps among its priority risk areas for 2026.

🚨 BREAKING: ASIC issues warning over Bitget's 'unlicensed' crypto futures products in Australia, targeting Australian investors. ASIC aims to rein in platforms offering unauthorized services.

— CryptoAlert (@SatoshiWatch) July 28, 2025