Federal Court fines BPS $9.3M over misleading Qoin Wallet
Australia’s Federal Court has ordered BPS Financial Pty Ltd (BPS) to pay 14 million Australian dollars ($9.3 million) in penalties over the promotion and operation of its Qoin Wallet product, following enforcement action by the Australian Securities and Investments Commission (ASIC).
According to ASIC, BPS marketed the Qoin Wallet as a non-cash payment facility linked to the Qoin digital token. The court found that between January 2020 and mid-2023, BPS issued the product and provided financial advice without an Australian Financial Services Licence, breaching the Corporations Act. A detailed court documents provides a full rundown of the case proceedings.
ASIC Chair Joe Longo said providers of such products must hold the appropriate licenses and authorizations, and that investors should be able to rely on clear and accurate information, noting that crypto products can be volatile, risky, and complex.
Court imposes penalties and restrictions on BPS Financial
The court’s penalty includes $1.3 million for unlicensed conduct and $8 million for misleading and deceptive representations. In delivering the judgment, Judge Downes characterized BPS’s conduct as serious and unlawful, citing senior management involvement and shortcomings in the company’s compliance systems.
Beyond monetary penalties, BPS is prohibited from operating a financial services business without a licence for 10 years. The company must also publish court-ordered publicity notices on the Qoin Wallet app and website and pay most of ASIC’s legal costs.
ASIC commenced civil penalty proceedings in 2022 over alleged misleading statements and unlicensed conduct related to the Qoin token. In decisions delivered in 2024 and upheld on appeal in 2025, the court found BPS made false claims about the Qoin Wallet, including assertions of official approval or registration, the ease of exchanging Qoin tokens for fiat currency or other crypto-assets, and widespread merchant acceptance.
ASIC streamlines licensing rules for stablecoins
In December, ASIC finalized exemptions aimed at simplifying the distribution of stablecoins and wrapped tokens. The measures remove the requirement for intermediaries to hold separate Australian Financial Services Licences and permit the use of omnibus accounts with appropriate record-keeping, extending earlier relief and lowering compliance costs for digital asset and payments businesses.
In a Tuesday report titled “Key issues outlook 2026,” Longo identified key risks for the year ahead, including retail exposure to opaque private credit, operational failures in superannuation, high‑risk investment sales that could compromise retirement savings, AI‑related consumer harm, and regulatory gaps across digital assets and fintech.
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