ASIC: Federal Court Orders $14m Penalties Over BPS Financial’s Qoin Wallet

The Federal Court of Australia has ordered BPS Financial Pty Ltd to pay $14 million in pecuniary penalties over its promotion and operation of its Qoin Wallet product, which it promoted as a non-cash payment facility linked to a digital token called Qoin. 

The media release notes that, in 2024, the Court found BPS engaged in unlicensed conduct for almost three years by issuing and providing financial advice about the Qoin Wallet without an Australian Financial Services Licence, and also engaged in misleading and deceptive conduct by making false and misleading representations. In 2025, the Full Federal Court found an additional 10-month period of unlicensed conduct because BPS could not rely on the “authorised representative” exemption when issuing the Qoin Wallet. 

Today’s penalties are split into $2 million for unlicensed conduct and $12 million for misleading and deceptive conduct connected to false and misleading statements. 

 Joe Longo said the penalty size underscores the seriousness of the misconduct and is intended to deter the digital asset industry, adding that providers must be appropriately licensed and investors should be able to rely on “clear and correct statements” given crypto products can be volatile, risky and complex. 

In her judgment, Justice Downes stated BPS engaged in serious unlawful misconduct from January 2020 until mid-2023, and that the penalties (including the cumulative $12 million figure) reflect deterrence and factors such as management involvement and inadequate compliance systems. 

Beyond the financial penalties, the Court also ordered: permanent restraints on specific false or misleading representations (including about holders, exchangeability for fiat/other crypto-assets, and official approval/registration), a 10-year restraint on carrying on a financial services business without an Australian financial services licence, publication of an adverse publicity notice (including steps to request publication on the “qoin.com” website), and payment of most of ASIC’s costs. 

Source: 

26-008MR BPS Financial to pay $14 million in penalties over crypto Qoin Wallet | ASIC

Australian Securities and Investments Commission v BPS Financial Pty Ltd [2024] FCA 457

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