One of Australia’s most high-profile crypto enforcement cases has ended with a $14 million penalty against BPS Financial over its promotion of the Qoin Wallet product.
Key Takeaways
- BPS Financial has been fined $14 million by the Federal Court for unlicensed financial activity and misleading conduct involving its Qoin Wallet product.
- The Qoin Wallet was marketed as a non-cash payment facility linked to a digital crypto token, despite BPS not holding the required financial services license.
- The penalty includes $2 million for unlicensed conduct and $12 million for deceptive representations, many involving claims about token usage and regulatory status.
- ASIC says the ruling sends a clear message to the crypto sector about the importance of licensing and truthful disclosures in digital finance.
What Happened?
The Australian Securities and Investments Commission (ASIC) has won a major legal battle against BPS Financial, securing a $14 million penalty for illegal conduct related to its crypto product, the Qoin Wallet. The Federal Court found that BPS operated without a financial services license and made multiple false claims to consumers about the wallet’s legitimacy and functionality.
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Federal Court Delivers Harsh Penalties
The penalties stem from findings that BPS Financial operated the Qoin Wallet between January 2020 and mid-2023 without the required Australian Financial Services License. The court also ruled that BPS misled users with claims that Qoin tokens were widely accepted and could easily be exchanged for fiat or other cryptocurrencies.
According to the ruling:
- $2 million of the total penalty was for unlicensed conduct.
- $12 million was imposed for misleading and deceptive conduct.
Justice Downes described BPS’s behavior as “serious and unlawful misconduct” and highlighted the involvement of senior management and inadequate compliance systems as aggravating factors. The court concluded that BPS engaged in objectively reckless behavior, targeting a vulnerable audience without proper oversight.
Court-Imposed Restrictions on BPS
In addition to the financial penalty, the court has imposed strict operational restrictions on BPS Financial:
- BPS is barred from operating a financial services business without a license for the next 10 years.
- It must publish court-ordered public notices in the Qoin Wallet app and on its website.
- BPS is permanently restrained from making misleading claims about the number of Qoin Wallet holders, the exchangeability of Qoin tokens, or the product’s official approval.
- The company has also been ordered to cover most of ASIC’s legal costs.
These actions follow ASIC’s civil proceedings launched in 2022 and judgments delivered in 2024, which were upheld by the Full Federal Court in 2025.
ASIC’s Message to the Crypto Industry
ASIC Chair Joe Longo emphasized that the case demonstrates the regulator’s commitment to investor protection in the crypto sector.
Longo stated:
He warned that crypto products are often highly volatile, risky, and complex, and providers must adhere to licensing requirements and ensure that investors receive accurate, clear information.
ASIC has also recently finalized new licensing exemptions for stablecoins and wrapped tokens, aiming to reduce compliance burdens in certain segments while maintaining investor protection standards.
CoinLaw’s Takeaway
In my experience covering crypto regulations, this case sets a bold precedent. It shows that ASIC is not just issuing warnings but is fully prepared to go to court and enforce the law with heavy penalties. If you’re in the digital asset space in Australia, this is your wake-up call. Don’t ignore licensing. Don’t overpromise. And definitely don’t assume crypto is too new to be regulated. The court’s verdict proves that consumer protection comes first, and regulators are watching closely.
