Chair

<ul>
 <li>Court ruling exposes licensing failures behind BPS Financial’s Qoin Wallet operations</li>
 <li>ASIC enforcement highlights risks tied to misleading crypto payment product claims</li>
 <li>Heavy penalties signal tougher oversight for Australia’s digital asset sector</li>
</ul>
Australia’s financial regulator has <a href="https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-008mr-bps-financial-to-pay-14-million-in-penalties-over-crypto-qoin-wallet/?utm_source=miragenews&amp;utm_medium=miragenews&amp;utm_campaign=news" target="_blank" rel="noopener noreferrer nofollow">secured a decisive court victory</a> against BPS Financial Pty Ltd over its Qoin Wallet product. The Federal Court ordered the company to pay A$14 million, about $9.3 million, in penalties for unlicensed conduct and misleading representations. The ruling followed prolonged legal action focused on how BPS promoted and operated the Qoin Wallet. 
According to the Australian Securities and Investments Commission, the company marketed the product as a non-cash payment facility linked to its Qoin digital token. However, the court found the business failed to meet mandatory licensing obligations. Between January 2020 and mid-2023, BPS issued the Qoin Wallet and provided financial services without holding an Australian Financial Services Licence. 
Consequently, the court ruled the company breached the Corporations Act, with ASIC Chair Joe Longo stressing the need for licensing safeguards in high-risk crypto products. 
Also Read: <a href="https://36crypto.com/how-many-xrp-is-enough-the-right-bag-can-go-far-with-patience/" target="_blank" rel="noopener noreferrer nofollow">How Much XRP Is Enough? ‘The Right Bag Can Go Far With Patience’</a> 
<h2 id="unlicensed-conduct-and-misleading-claims-draw-penalties">Unlicensed conduct and misleading claims draw penalties</h2>
Significantly, the court imposed A$1.3 million in penalties for <a href="https://36crypto.com/australian-police-crack-encrypted-crypto-wallet-worth-5-9-million/" target="_blank" rel="noopener noreferrer nofollow">unlicensed conduct linked</a> to the Qoin Wallet. Additionally, it ordered A$8 million for misleading and deceptive representations made during promotion. Judge Downes described the conduct as serious and unlawful misconduct. She also highlighted senior management involvement and inadequate compliance systems. 
BPS made several false statements while promoting the Qoin Wallet to users and merchants. These statements suggested the product held official approval or registration. They also claimed Qoin tokens could be readily exchanged for fiat currency or other crypto assets. 
Moreover, the company promoted the token as widely accepted by merchants across Australia. However, earlier court findings rejected those claims. According to judgments upheld on appeal, the representations overstated the token’s liquidity and real-world usability. 
ASIC launched civil penalty proceedings after identifying risks to retail users, arguing that consumers relied on unclear and inaccurate information. The court later agreed, reinforcing disclosure standards for digital payment products. 
<h2 id="court-orders-reshape-bps-financial-s-operations">Court orders reshape BPS Financial’s operations</h2>
Beyond the financial penalty, the court imposed long-term operational restrictions on BPS Financial, barring the company from running licensed financial services for 10 years. This order significantly limits its future activity within the sector. Additionally, BPS must publish court-mandated notices on its Qoin Wallet app and website to inform users and warn potential customers. The company must also pay most of the regulator’s legal costs. 
Meanwhile, ASIC continues to refine its <a href="https://36crypto.com/australian-police-crack-encrypted-crypto-wallet-worth-5-9-million/" target="_blank" rel="noopener noreferrer nofollow">broader digital asset framework</a> as new exemptions simplify stablecoin and wrapped token distribution. These measures reduce certain licensing burdens while maintaining record-keeping oversight. 
Separately, the regulator outlined wider risks facing Australia’s financial system in its “Key issues outlook 2026” report, including opaque private credit exposure and superannuation failures. The report also flagged high-risk investment sales, AI-related consumer harm, and fintech regulatory gaps. 
Overall, the BPS Financial case underscores a firm enforcement stance, signaling tighter oversight across digital finance. Consequently, crypto and payment firms face rising pressure to align innovation with licensing, disclosure, and compliance requirements. 
Also Read: <a href="https://36crypto.com/alert-xrps-21-5-roadmap-just-unlocked-heres-whats-happening/" target="_blank" rel="noopener noreferrer nofollow">Alert: XRP’S $21.5+ Roadmap Just Unlocked – Here’s What’s Happening</a> 
The post <a rel="noopener noreferrer nofollow" href="https://36crypto.com/australia-court-fines-bps-financial-a14m-over-unlicensed-qoin-wallet/">Australia Court Fines BPS Financial A$14M Over Unlicensed Qoin Wallet</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://36crypto.com">36Crypto</a>.

Australia Court Fines BPS Financial A$14M Over Unlicensed Qoin Wallet

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