The Federal Court ordered BPS Financial Pty Ltd to pay $9.3 million after finding the firm promoted and operated its Qoin Wallet without an Australian licence between January 2020 and mid-2023, following action by the regulator (see the regulator’s release). The court concluded the product and related advice were provided while the company lacked an Australian Financial Services Licence.
The total penalty of AUD 14 million equates to about $9.3 million, including roughly $0.9 million for unlicensed conduct and $5.3 million for misleading and deceptive representations, according to the judgment. In that decision, Judge Downes described the conduct as “serious and unlawful misconduct,” and noted senior management involvement and weak compliance systems.
The court barred BPS Financial from operating a financial services business without a licence for ten years and ordered it to publish court-mandated notices on the wallet app and website. The company must also pay most of the regulator’s legal costs.
Earlier rulings in 2024, upheld on appeal in 2025, found the firm made false claims that the Qoin token was approved, easily convertible to fiat or other crypto-assets, and widely accepted by merchants.
Separately, in December the regulator finalized exemptions to ease stablecoin and wrapped-token distribution, allowing omnibus accounts with required record-keeping (details in the Key issues outlook 2026 report). “Given the nature of these products, providers must have the appropriate licenses and authorisations, and investors must be able to make decisions based on clear and correct statements, especially as crypto products can be highly volatile, inherently risky and complex,” said ASIC Chair Joe Longo.
