Australia’s financial regulator has secured a significant court win against BPS Financial, with the Federal Court ordering the company to pay 14 million Australian dollars ($9.3 million) for operating without a license and misleading users about its Qoin Wallet product.
The ruling caps a multi-year legal battle brought by the Australian Securities and Investments Commission (ASIC), which accused BPS of running an unlicensed financial services business while overstating the legitimacy and functionality of its crypto-linked payment offering.
Related reporting: Australian Police Crack Encrypted Crypto Wallet, Seize $5.9M in Digital Assets After Data Scientist Deciphers Hidden Code
In a statement released Tuesday, ASIC said the court found that BPS promoted the Qoin Wallet as a non-cash payment facility connected to its Qoin digital token, despite lacking an Australian Financial Services Licence. The misconduct spanned from January 2020 through mid-2023 and breached the Corporations Act.
ASIC Chair Joe Longo said the case underscored the risks facing consumers in the crypto sector. He emphasized that firms offering crypto-related financial products must hold proper authorizations and provide accurate information, particularly given the volatility and complexity of digital assets.
Court imposes fines and long-term restrictions
The penalty includes $1.3 million for unlicensed conduct and $8 million for misleading and deceptive representations. In her judgment, Justice Downes described BPS’s actions as serious and unlawful, highlighting the role of senior management and pointing to systemic compliance failures within the company.
Beyond the financial sanctions, the court imposed sweeping restrictions on BPS. The firm is barred from operating a financial services business without a license for the next decade. It must also publish corrective notices on the Qoin Wallet app and website and cover the majority of ASIC’s legal costs.
ASIC first launched civil penalty proceedings against BPS in 2022. Earlier rulings in 2024, later upheld on appeal in 2025, found the company misled consumers by claiming the Qoin Wallet was officially approved, that Qoin tokens could be easily exchanged for fiat or other crypto assets, and that the token enjoyed broad merchant acceptance.
ASIC’s proposed penalty for BPS Financial’s misleading conduct. Source: ASIC
Regulatory tightening alongside targeted relief
The enforcement action comes as ASIC continues to refine its broader digital asset framework. In December, the regulator introduced new exemptions aimed at simplifying the distribution of stablecoins and wrapped tokens, allowing certain intermediaries to operate without holding separate financial services licenses under defined conditions.
At the same time, ASIC has flagged crypto and fintech as key regulatory risk areas. In its “Key issues outlook 2026,” Longo warned about rising consumer exposure to opaque financial products, operational weaknesses in financial institutions, AI-related harms and ongoing regulatory gaps across digital asset markets.