Australian Court Fines BPS Financial $14 Million Over Unlicensed Crypto Product 'Qoin Wallet'

The Australian Federal Court has ordered BPS Financial Pty Ltd to pay $14 million in penalties for misconduct linked to its promotion and operation of the ‘Qoin Wallet’ crypto product.

The ‘Qoin Wallet’ was marketed as a non‑cash payment facility tied to the digital token ‘Qoin.’ However, the Court found that BPS Financial engaged in unlicensed conduct and made false and misleading statements about the product.

In 2024, the Federal Court ruled that BPS Financial operated without an Australian Financial Services Licence for nearly three years, issuing and advising on the Qoin Wallet unlawfully. The company was also found to have misled consumers with false claims about the wallet.

In 2025, the Full Federal Court extended the findings, ruling that BPS Financial continued unlicensed conduct for an additional 10 months because BPS could not rely on the ‘authorised representative’ exemption under the Corporations Act when issuing the Qoin Wallet.

The Court imposed $14 million in total fines, comprising $2 million for unlicensed conduct and $12 million for misleading and deceptive conduct.

ASIC’s Response

Chair of the Australian Securities and Investments Commission(ASIC) Joe Longo said the ruling sends a strong warning to the crypto industry. “Given the nature of these products, providers must have the appropriate licenses and authorisations, and investors must be able to make decisions based on clear and correct statements, especially as crypto products can be highly volatile, inherently risky and complex.”

Additional Orders

Beyond financial penalties, the Court imposed strict restrictions on BPS Financial:

• A permanent ban on making false or misleading claims about the ‘Qoin Wallet’, including its approval status, token exchangeability, or holder numbers.
• A 10‑year ban on operating any financial services business without a licence.
• Mandatory publication of adverse publicity notices on the Qoin Wallet app and the qoin.com website.
• Payment of most of ASIC’s legal costs.

ASIC urged consumers to remain cautious about claims made in connection with crypto‑assets and related products.

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