Aussie Regulator Sues BPS Over False Statements on Qoin Token

Following the Aussie regulator’s warning to digital assets providers in Australia, the Australian Securities and Investments Commission (ASIC) has now commenced civil penalty proceedings in a Federal court against BPS Financial Pty Ltd (BPS). According to the regulator, BPS issued false, misleading, and deceptive representations of its Qoin token.

Also, the financial service provider was indicted for engaging in unlicensed conduct with the Qoin token which was launched three years ago, allowing merchants to accept it as a means of payment for goods and services. Precisely, the ASIC noted that the firm misled its 79,000 users to believe that the Qoin facility is regulated in Australia and is in full compliance with all financial service laws when it was not.    

ASIC Deputy Chair Sarah Court said, “We allege that, despite what BPS represented in its marketing, Qoin merchant numbers have been declining, and that there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges.

ASIC is particularly concerned about the alleged misrepresentation that the Qoin Facility is regulated in Australia, as we believe the more than 79,000 individuals and entities who have been issued with the Qoin Facility may have believed that it was compliant with financial services laws when ASIC considers it was not.”

Apart from the issue of compliance and regulation of the Qoin token, another of the misleading statements that were issued by BPS is that Aussie users who own the Qoin token can confidently trade them for other digital assets or even the local fiat currency, the Australian Dollar through independent crypto exchanges. 

ASIC Looks out For Compliance Defaulters

Also, Aussies were made to believe that Qoin tokens can be used as payment for goods and services from an increasing number of merchants registered with BPS. With ASIC atop the situation at present, crypto assets service providers are being reminded that the Australian regulator is watching the crypto market for any such misconduct.

In recent weeks, the regulator suspended three cryptocurrency funds placed under the charge of Holon Investments Australia Limited (Holon) due to non-compliance with the target markets’ determination. With this order, Holon can not give the Holon Bitcoin Fund, Holon Ethereum Fund, and Holon Filecoin Fund to retail investors.