Australian Federal Court Penalizes BPS Financial for Unlicensed Crypto Wallet Promotion

The Australian Securities and Investments Commission (ASIC) announced that the Federal Court has imposed a penalty of AU$14 million (approximately $9.6 million) on BPS Financial, a Gold Coast-based company, for promoting its 'Qoin Wallet' crypto product without the necessary licensing. The Court found the company guilty of misleading promotional practices and operating outside of regulatory requirements.

Key Takeaways

BPS Financial has been fined AU$14 million for promoting its unlicensed crypto product, Qoin Wallet.
ASIC's action stems from concerns about misleading promotions and the company's lack of licensing within Australia.
The Court's ruling aims to highlight the importance of compliance in the digital asset sector.
The ASIC's recent risk report emphasizes ongoing challenges related to crypto asset regulation.

ASIC BPS Financial

BPS Financial Held Accountable for Unlicensed Crypto Activities

The Australian Securities and Investments Commission (ASIC) revealed on Tuesday that a Federal Court has imposed a fine of AU$14 million ($9.6 million) on BPS Financial, which is based on the Gold Coast. The penalty is for the company's operation and promotion of its 'Qoin Wallet' cryptocurrency product.

BPS Financial, which manages the Block Trade Exchange, promoted a crypto token known as ‘Qoin’ and advertised a wallet for “non-cash payments” that is associated with it.

ASIC initiated its first legal action against BPS Financial in 2022, accusing the firm of unlicensed activities and misleading promotional practices regarding crypto assets.

BPS Financial asserted that its self-issued cryptocurrency, Qoin, could be exchanged for Australian dollars via other platforms. The company also claimed that both the Qoin wallet and its operations were regulated. However, BPS Financial does not possess a license to operate in Australia.

In a 2024 ruling, the Federal Court indicated that the company had engaged in unlicensed activities for nearly three years by issuing Qoin and promoting its wallet.

Court Rulings and Financial Implications for BPS Financial

According to the Tuesday statement, the firm made numerous false and misleading claims about the Qoin Wallet.

ASIC Chair Joe Longo stated, “Providers of such products must possess the requisite licenses and authorizations due to the nature of these offerings.”

The Court has mandated BPS Financial to pay a total of AU$14 million, divided into two parts based on the infringements. This includes a AU$12 million penalty for misleading statements and an additional AU$2 million for engaging in unlicensed conduct.

Longo emphasized, “The magnitude of these penalties highlights the seriousness of BPS Financial’s misconduct and aims to deliver a strong deterrent message to the digital asset sector.”

Addressing Regulatory Gaps in Australia’s Crypto Landscape

On the same day, ASIC unveiled a comprehensive risk report for 2026, underscoring the ongoing risks posed by crypto assets, which include “unlicensed advice, misleading conduct, and the exploitation of ambiguous regulatory boundaries.”

The regulator argued that it is imperative for the government to assess whether new asset categories should fall under a licensing framework.

“It remains a priority for ASIC to ensure clarity on licensing requirements and maintain effective oversight in 2026,” the report stated.