Australia’s securities oversight body has secured its inaugural court success, establishing a pivotal precedent concerning a non-cash payment platform that incorporates cryptocurrency. The Australian Securities & Investments Commission (ASIC) made a significant impact in the local crypto market as the Federal Court ruled against BPS Financial (BPS) for engaging in unlicensed conduct related to the Qoin Wallet, a non-cash payment product utilizing the Qoin token.
ASIC announced in a press release on May 3 that the court ruled against BPS Financial for operating the Qoin Wallet without the necessary financial services license or authorization from a licensed entity to offer financial advice.
“Justice Downes also found BPS engaged in misleading or deceptive conduct and made false or misleading representations concerning the Qoin Wallet.”
ASIC
The ruling emphasized that BTX, the only crypto exchange accepting Qoin tokens, lacked independence from BPS and did not support the exchange of various altcoins.
ASIC Chair Joe Longo highlighted the ruling’s importance as the first court case involving a crypto-based non-cash payment facility. He also noted that these proceedings should serve as a warning to the crypto industry, signaling that ASIC will continue to closely examine their products to safeguard consumers and ensure compliance with regulatory requirements.
The court has directed both parties to collaborate in deciding the subsequent steps for additional hearings, which will cover outstanding matters such as penalties. A specific date for the hearing is expected to be scheduled later in 2024.
In a separate development, ASIC is pursuing an appeal against the Federal Court’s dismissal of the regulator’s case against Finder Wallet, a subsidiary of Finder.com. The legal action, launched in December 2022, alleged that Finder Wallet provided financial services without possessing an Australian Financial Services license.
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