AUSTRALIAN COURT RULES AGAINST QOIN ISSUER BPS FINANCIAL ON 4 CHARGES

Last updated: June 19, 2025, 20:07 | Written by: Changpeng Zhao

The world of cryptocurrency and digital payment systems can be a complex landscape, often blurring the lines of traditional finance and regulatory oversight.Recently, the Australian Securities and Investments Commission (ASIC) scored a significant victory in its pursuit of ensuring consumer protection and market integrity. يعلن مشروع Tabi Chain البيئي Mundus Engine عن انضمامه رسميًا إلى برنامج مطوري NVIDIAThe Federal Court of Australia sided with ASIC in a case against BPS Financial Pty Ltd (BPS), the company behind the Qoin token and associated payment system. The Australian Federal Court has delivered a ruling mostly in favor of Australia's markets regulator in its case against BPS Financial Pty Ltd (BPS) over itsThis ruling highlights the importance of adhering to financial regulations, even in the seemingly novel realm of digital assets.The court found BPS guilty on four key charges related to deceptive practices and operating without the necessary licenses.But what exactly did BPS do wrong? Earlier this month, the Federal Court of Australia handed down its judgment in Australian Securities and Investments Commission (ASIC) v BPS Financial Pty Ltd (BPS) [2025] FCA 457, concerning the cryptocurrency and related payment system provided by BPS. The Court found that BPS unlawfully carried on a financial services business withoutWhat are the implications of this ruling for the broader cryptocurrency industry in Australia?And perhaps most importantly, what does this mean for current and former users of the Qoin system?This article delves into the details of the case, the charges against BPS Financial, and the potential ramifications of this landmark decision. Nigerian SEC Set To Meet With Foreign Crypto Exchanges Amid Regulatory Crackdown: ReportBeyond this case, BPS also faces a class-action lawsuit.The consequences of non-compliance are steep, and the message is clear: Australian financial regulations apply to cryptocurrency-related businesses.

ASIC's Victory: Unpacking the Charges Against BPS Financial

The Australian Securities and Investments Commission (ASIC) initiated legal proceedings against BPS Financial, alleging that the company engaged in deceptive conduct related to its Qoin token and the associated non-cash payment facility. The Australian Federal Court has delivered a ruling mostly in favor of Australia s markets regulator in its case against BPS Financial Pty Ltd (BPS) over its Qoin scheme. On Friday, Judge JThe Federal Court's ruling largely favored ASIC, finding BPS guilty on four separate charges. The Australian Securities and Investments Commission (ASIC) has emerged victorious in its legal battle against BPS Financial, accusing the company of fraudulent activities related to its non-cash payment system powered by the Qoin token. The Federal Court of Australia found BPS guilty of making four false claims, including assertions that QoinThis victory is a clear signal that ASIC is actively monitoring the cryptocurrency space and is prepared to take action against companies that fail to comply with Australian financial regulations.

Charge 1: Operating Without a Financial Services License

One of the most significant charges against BPS Financial was that it operated a financial services business without holding the required Australian Financial Services Licence (AFSL). Australian court rules against Qoin issuer BPS Financial on 4 charges : Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC . The Federal Court of Australia found that BPS made four false claims.According to the court documents, BPS contravened the Corporations Act by not possessing an AFSL nor being authorized by a licence holder to issue or provide financial product advice concerning the Qoin Wallet.This violation occurred from January 2025 onwards, with a temporary exception during a ten-month period when BPS was an authorized representative of PNI. Paradigm-backed Conduit launches marketplace for rollups eager to boost scalabilityThis charge underscores the importance of obtaining the proper licensing before engaging in financial services activities, regardless of whether those services involve traditional currency or cryptocurrency.

Charge 2: Misleading Representations of Compliance

The court also found BPS guilty of making misleading representations about its compliance with Australian financial services laws.Specifically, BPS claimed that the Qoin financial product and/or BPS itself were fully compliant with Australian financial services laws when that was not the case.This ""Compliance Representation,"" as it's referred to in court documents, was a crucial aspect of ASIC's case. BTCUSD Bitcoin Australian court rules against Qoin issuer BPS Financial on 4 charges. Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASICIt highlights the importance of transparency and honesty when promoting financial products, especially in a sector as closely scrutinized as cryptocurrency. Related: ASIC Very Concerned about Crypto Fraud, Makes Move Against Miners. Penalties to be Dished Out in Late 2025. The allegations of flaunting Australian financial regulations were made against BPS, the company that offered Qoin Wallet throughout the early 2025s.Making false claims about regulatory compliance can erode investor trust and lead to significant legal repercussions.

Charge 3: False or Misleading Statements

Beyond the compliance representation, the Federal Court also found BPS made other false or misleading statements regarding Qoin.While the specifics of these statements haven't been released in great detail yet, the mere fact that the court found BPS guilty of this highlights their serious misleading nature. The Australian Federal Court has delivered a ruling mostly in favor of Australia s markets regulator in its case against BPS Financial Pty Ltd (BPS) over its Qoin scheme. On Friday, Judge J Downes concluded that the Australian Securities and Investments Commission (ASIC) succeeded in its Unlicensed Conduct Case against BPS, according to court documents. However, the ruling excluded [ ]Such statements could encompass a range of misrepresentations, from exaggerated claims about Qoin's value and potential to misleading information about its underlying technology or security.

Charge 4: Unlawful Financial Services Business Operation

In addition to not having a licence, the court found that BPS had in fact, operated unlawfully as a financial services business by providing its products and services to Australian citizens.This means the court recognized that the Qoin wallet and related services constitue a financial product under Australian law, and therefore fall under regulations. Australian Securities and Investments Commission v BPS Financial Pty Ltd [2025] FCA 457 2 (4) The Compliance Representation: that the Qoin financial product and/or BPS were each fully compliant with Australian financial services laws when that was not so. Following the trial on liability only which was held in October 2025, ASIC has succeeded inAs BPS was not licenced at the time, the activity was unlawful. The Australian Federal Court has delivered a ruling mostly in favor of Australia s markets regulator in its case against BPS Financial Pty Ltd (BPS) over its Qoin scheme. On Friday, Judge J Downes concluded that the Australian Securities and Investments Commission (ASIC) succeeded in its Unlicensed Conduct Case against BPS, according to courtThis underscores the importance of understanding financial laws.

The Qoin Scheme: How it Works and Why it Attracted Regulatory Scrutiny

To understand the significance of the court's ruling, it's essential to understand the mechanics of the Qoin scheme. The Australian Securities Investment Commission (ASIC) has won a court case against BPS Financial. The firm is accused of deceptive practices in connection with its non-cash payment facility, powered by the Qoin token.Qoin is a cryptocurrency-based payment system that aims to facilitate transactions between merchants and consumers. The Australian Securities Investment Commission (ASIC) has won a court case against BPS Financial. The firm is accused of deceptive practices in connection with its non-cash payment facility, powered by the Qoin token. The Federal Court of Australia found that BPS made four false claims.The core of the system is the Qoin token, which is used as the medium of exchange within the Qoin ecosystem. The Australian Securities Investment Commission (ASIC) has won a court case against BPS Financial. The firm is accused of deceptive practices in connection with its non-cash payment facility, powered by the Qoin token.The Federal Court of Australia found that BPS made four false claims.The system operates through the Qoin Wallet, which users can use to store, send, and receive Qoin tokens.This wallet was the subject of the allegations as BPS had no license to offer financial advice about it.

The Qoin system sought to create a closed-loop economy, where merchants would accept Qoin as payment and consumers would use Qoin for purchases.However, the system faced several challenges, including concerns about the liquidity of the Qoin token, the limited number of merchants accepting Qoin, and the restrictions on converting Qoin back into traditional currency. Ever wondered what happens when a company is accused of deceitful practices involving cryptocurrency? Let's dive into the story of BPS Financial and its non-These factors contributed to ASIC's decision to investigate BPS Financial and ultimately led to the legal action.

Implications for the Cryptocurrency Industry in Australia

The outcome of ASIC's case against BPS Financial has far-reaching implications for the cryptocurrency industry in Australia.The ruling serves as a strong warning to companies operating in the digital asset space that they must comply with Australian financial regulations. The Australian Securities Investment Commission (ASIC) has emerged victorious in a court case against BPS Financial, a firm accused of engaging in deceptive practices involving its non-cash payment facility, which is backed by the Qoin token. The Federal Court of Australia determined that BPS hadIgnorance of the law is not an excuse, and ASIC is prepared to take enforcement action against those who fail to meet their obligations.

Increased Regulatory Scrutiny: The ruling will likely lead to increased regulatory scrutiny of cryptocurrency-related businesses in Australia. BTCUSD Bitcoin Australian court rules against Qoin issuer BPS Financial on 4 charges. Qoin still has a class-action suit pending against it in addition to the caseASIC will be more vigilant in monitoring compliance with financial regulations and will be more likely to take action against companies that are found to be in violation.
Greater Emphasis on Licensing: Companies offering financial services related to cryptocurrency will need to prioritize obtaining the necessary licenses. The Australian securities regulator won a court victory over BPS Financial for deceptive Australian court rules against Qoin issuer BPS Financial on 4 charges ASIC initiated its actionThis includes obtaining an AFSL or being authorized by a licence holder.
Enhanced Transparency and Disclosure: Cryptocurrency businesses will need to be more transparent about their operations and provide clear and accurate disclosures to investors and consumers. CoinW CoinWinがUEFAヨーロッパリーグイベントを開始、参加者は最大100万ドルの賞金プールを共有可能This includes disclosing the risks associated with investing in or using cryptocurrency products.
Focus on Consumer Protection: The ruling underscores the importance of consumer protection in the cryptocurrency industry. ASIC s argument included the allegation that the Qoin Blockchain and Qoin Wallets formed a single scheme. However, the court disagreed with this assertion. Australian court rules against Qoin issuer BPS Financial on 4 charges : Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC.ASIC will be focused on ensuring that consumers are not misled or taken advantage of by cryptocurrency businesses.

What's Next for BPS Financial and Qoin?

While the Federal Court has ruled against BPS Financial on the liability issues, the matter is far from over. Australian court rules against Qoin issuer BPS Financial on 4 charges . PANews., . Qoin still has a class-action suit pending against it inThe next step is for the court to determine the penalties that BPS Financial will face. Australian Federal Court largely supports ASIC in the case against BPS Financial over Qoin scheme. What's next for cryptocurrency regulation?These penalties could include fines, injunctions, and other sanctions. Australian court rules against Qoin issuer BPS Financial on 4 charges : Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC. The Federal Court of Australia found that BPS made four false claims.It is expected that penalties will be dished out in late 2025.

In addition to the ASIC case, BPS Financial also faces a class-action lawsuit from Qoin users who allege that they were misled or suffered financial losses as a result of the Qoin scheme.This class action is pending, adding another layer of complexity to the legal challenges facing BPS Financial.

The Broader Context: ASIC's Concerns About Crypto Fraud

ASIC's pursuit of BPS Financial is part of a broader effort to combat crypto fraud and protect consumers in the digital asset space.ASIC has expressed growing concern about the increasing prevalence of crypto-related scams and has taken steps to crack down on fraudulent activities. Regarding Allegation 1, the court found BPS, since January 2025 except the period where BPS was an authorised representative of PNI had breached the Corporations Act, as it neither held an AFS licence nor was it authorised by a licence holder to issue or provide financial product advice concerning the Qoin Wallet.This includes taking action against crypto miners and other entities involved in the cryptocurrency industry.

ASIC's concerns about crypto fraud are well-founded. Australian court rules against Qoin issuer BPS Financial on 4 charges Qoin still has a class-action suit pending against it in addition to the case brought byThe cryptocurrency market is characterized by volatility, complexity, and a lack of regulatory oversight, making it an attractive target for fraudsters.Investors and consumers need to be aware of the risks associated with investing in or using cryptocurrency products and should exercise caution when dealing with unfamiliar entities.

Questions and Answers About the BPS Financial Case and Qoin

Here are some common questions and answers about the BPS Financial case and the Qoin scheme:

What exactly did BPS Financial do wrong?

BPS Financial was found guilty of four charges: operating a financial services business without a license, making misleading representations about compliance with financial regulations, and other false or misleading statements regarding Qoin, as well as operating an unlawful financial services business.

What are the penalties that BPS Financial could face?

The penalties could include fines, injunctions, and other sanctions, to be determined by the court.

What is the status of the class-action lawsuit against BPS Financial?

The class-action lawsuit is still pending.

What should Qoin users do now?

Qoin users should seek independent financial and legal advice to understand their rights and options.They should also stay informed about the progress of the ASIC case and the class-action lawsuit.

Is Qoin still operating?

Yes, Qoin is still operating, but its future is uncertain given the legal challenges facing BPS Financial.

What is ASIC's advice for investing in cryptocurrency?

ASIC advises investors to be cautious when investing in cryptocurrency and to understand the risks involved.They recommend doing thorough research, only investing what you can afford to lose, and avoiding unregistered or unlicensed entities.

Lessons Learned and Actionable Advice

The BPS Financial case offers several important lessons for companies operating in the cryptocurrency industry and for investors and consumers alike.Here's some actionable advice based on the case:

Compliance is Key: Cryptocurrency businesses must prioritize compliance with all applicable financial regulations.This includes obtaining the necessary licenses, implementing robust compliance programs, and being transparent with investors and consumers.
Seek Professional Advice: If you are unsure about your legal or regulatory obligations, seek professional advice from qualified lawyers and financial advisors.
Do Your Research: Before investing in or using any cryptocurrency product, do thorough research to understand the risks involved. In delivering judgment for proceedings brought by ASIC, Justice Downes found that BPS, since January 2025 - and save for a 10-month period - contravened the Corporations Act as it did not hold an Australian Financial Services Licence, nor was authorised by a licence holder, to issue or provide financial advice about the Qoin Wallet.Don't rely solely on the marketing materials provided by the company.
Be Skeptical: Be skeptical of claims that seem too good to be true. Qoin still has a class-action suit pending against it in addition to the case brought by regulator ASIC. Australian court rules against Qoin issuer BPS Financial on 4 charges - PANews 风险提示：央行等十部委发布《关于进一步防范和处置虚拟货币交易炒作风险的通知》, 请读者提高风险意识，理性看待Cryptocurrency investments are inherently risky, and there are no guarantees of profits.
Stay Informed: Stay informed about the latest developments in the cryptocurrency industry and the regulatory landscape.This will help you make informed decisions and avoid potential scams.

The Future of Cryptocurrency Regulation in Australia

The BPS Financial case is a significant milestone in the evolution of cryptocurrency regulation in Australia.It demonstrates that ASIC is taking a proactive approach to regulating the digital asset space and is committed to protecting consumers and maintaining market integrity.As the cryptocurrency industry continues to evolve, it is likely that we will see further regulatory developments in Australia and around the world.

The future of cryptocurrency regulation will likely involve a combination of legislation, enforcement actions, and industry self-regulation.Regulators will need to strike a balance between fostering innovation and protecting consumers.The key will be to create a regulatory framework that is clear, consistent, and adaptable to the rapidly changing nature of the cryptocurrency industry.

Conclusion: A Wake-Up Call for the Crypto Industry

The Australian court's ruling against Qoin issuer BPS Financial on four charges serves as a resounding wake-up call for the cryptocurrency industry.This case underscores the critical importance of adhering to financial regulations, even in the seemingly uncharted territory of digital assets.BPS's failure to obtain the necessary financial services license and its misleading representations about compliance have resulted in significant legal repercussions and serve as a cautionary tale for other companies operating in the crypto space.ASIC's victory reinforces its commitment to protecting consumers and maintaining market integrity, signaling increased regulatory scrutiny and a greater emphasis on transparency and disclosure.The implications extend beyond BPS Financial, urging all cryptocurrency businesses in Australia to prioritize compliance, seek professional advice, and ensure that their operations align with the country's financial regulations.For investors and consumers, the case highlights the need for thorough research, skepticism towards unrealistic claims, and a constant awareness of the inherent risks associated with cryptocurrency investments.As Australia navigates the evolving landscape of digital assets, the BPS Financial case serves as a pivotal reminder that adherence to regulations is not just a legal obligation, but a fundamental pillar of a sustainable and trustworthy cryptocurrency ecosystem.Always remember to do your own research and be vigilant.This is an industry with both enormous potential and serious risks.