Court Orders $9.3M Penalty on BPS Financial for Qoin Product

Australian regulators secured a sweeping victory against BPS Financial Pty Ltd, ordering the company to pay 14 million AUD in penalties after a years-long probe into its Qoin Wallet promotion. The Federal Court ruling stems from ASIC accusations that BPS ran an unlicensed financial services business and issued misleading statements about its crypto-linked payment product, with activity spanning January 2020 to mid-2023. The regulator noted that the firm marketed the Qoin Wallet as a non-cash payment facility tied to its Qoin token while providing financial advice without an Australian Financial Services Licence. The outcome, disclosed in an ASIC release, reinforces the expectation that crypto-facilitated offerings operate under proper licensing and rigorous disclosures.

The penalty package broke down into 1.3 million AUD for unlicensed conduct and 8 million AUD for misleading and deceptive representations. In her judgment, Judge Downes described BPS’s actions as serious and unlawful misconduct, highlighting the involvement of senior management and the company’s insufficient compliance systems. Beyond the monetary sanction, the court imposed a decade-long operating ban on BPS from running a financial services business without a licence, and it ordered the firm to publish court-mandated notices on the Qoin Wallet app and website. The company was also ordered to shoulder most of ASIC’s legal costs. You can read the official release here: ASIC release.

In addition to the sanctions, the court ordered BPS to undertake a wide set of restrictions for the next ten years, effectively barring the company from operating a financial services business without a licence. The penalties also included a requirement to publicize the outcome on both the Qoin Wallet app and its website, ensuring that users are aware of the court’s findings about the product’s representations. ASIC was also granted a substantial portion of its legal costs, reinforcing regulators’ willingness to recoup enforcement expenses in high-profile cases involving crypto promotions.

The case traces back to a broader enforcement push by ASIC against firms promoting crypto-related products without proper licensing. In 2022, ASIC initiated civil penalty proceedings against BPS Financial over alleged misleading claims and unlicensed conduct tied to its Qoin token. Subsequent judgments in 2024, and an appeal upheld in 2025, reinforced that BPS had engaged in misleading and deceptive conduct by asserting regulatory approvals, easy exchangeability for fiat or other crypto-assets, and widespread merchant acceptance for Qoin Wallet. These findings framed the latest court decision as part of a continuing trajectory of tightened scrutiny over crypto promotions and licensing compliance.

Beyond the BPS case, ASIC has signaled a broader shift in how crypto assets should be distributed and managed. In December, the regulator finalized exemptions intended to simplify the distribution of stablecoins and wrapped tokens, reducing the need for intermediaries to hold separate Australian Financial Services licences. The change, described as enabling firms to operate with omnibus accounts under tighter record-keeping regimes, aims to lower compliance costs for players in the digital asset and payments space. The regulator’s outlook for 2026 highlighted several risk areas, including opaque private credit exposures, operational failures in superannuation, high-risk investment sales, and AI-driven consumer harm, all within a broader context of adapting oversight for digital assets and fintech.

Why it matters

The BPS case underscores a fundamental principle for crypto-related offerings: licensing and clear, accurate disclosures matter just as much as product innovation. For investors and users, the decision reinforces the notion that crypto-linked payment products may carry regulated protections, and that promoters must be transparent about licensing status, exchangeability, and merchant acceptance. The ruling also signals that regulators will not hesitate to impose sizeable penalties and long-term bans on entities that simplify or obscure the regulatory framework, particularly when complex or volatile assets are involved.

From a market perspective, the decision feeds into a broader regulatory narrative shaping the crypto ecosystem in Australia and beyond. With licensing exemptions for stablecoins and wrapped tokens now in play, firms can pursue more cost-effective pathways to offer digital-asset services, provided they comply with record-keeping and disclosure standards. At the same time, the enforcement actions against BPS illustrate that regulators are willing to intervene decisively where marketing communications blur the line between investment products and payment facilities. This dynamic may influence how exchanges, wallets, and payment processors structure product literature, risk disclosures, and licensing sponsorships as they expand their footprints in regulated markets.

For builders and operators in the Australian market, the case serves as a cautionary tale about governance and compliance architecture. Firms must ensure that senior leadership is aligned with licensing obligations, that advisory activities are properly licensed, and that representations about exchangeability and merchant acceptance are technically accurate and verifiable. In a space where volatility and complexity are inherent, clarity and regulatory alignment become competitive differentiators rather than mere compliance burdens.

What to watch next

• Publicity notices on the Qoin Wallet app and website must run as ordered, signaling how regulators enforce post-judgment communications.
• ASIC’s cost recovery implications will influence how firms budget for enforcement actions and potential future penalties.
• The 10-year operating ban raises questions about BPS’s ability to restructure or re-enter the financial services arena under different branding or ownership.
• The December stablecoin exemptions will likely affect onboarding strategies for firms seeking to deploy wrapped token or stablecoin-based services without triggering full licensing requirements.
• Regulators’ 2026 outlook points to ongoing focus areas in digital assets, AI-related consumer risk, and fintech regulatory gaps, potentially shaping future policy and enforcement priorities.

Sources & verification

• ASIC press release: 26-008MR – BPS Financial to pay 14 million AUD in penalties over crypto Qoin Wallet. 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&utm_medium=miragenews&utm_campaign=news
• Judgment document: 26-008MR Australian Securities and Investments Commission v BPS Financial Pty Ltd (PDF). https://download.asic.gov.au/media/m3miycxe/26-008mr-australian-securities-and-investments-commission-v-bps-financial-pty-ltd-penalty-2026-fca-18.pdf
• Civil penalty proceedings (2022) – ASIC’s enforcement action against BPS Financial over Qoin wallet claims. https://cointelegraph.com/news/asic-fires-industry-warning-shot-as-it-sues-bps-financial-over-crypto-promo
• Earlier judgments (2024) and appeal (2025) – BPS Financial Qoin token deception case. https://cointelegraph.com/news/asic-bps-financial-qoin-token-deception-case
• Key issues outlook 2026 – ASIC report on regulatory priorities and risk areas. https://asic.gov.au/about-asic/news-centre/news-items/key-issues-outlook-2026/

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Regulatory verdict underscores licensing demands for crypto promos

In a decision that magnifies the regulatory glare on crypto promotions, the Federal Court ruled against BPS Financial Pty Ltd in a case centered on the Qoin Wallet. The court found that from early 2020 through mid-2023, the firm launched and promoted a crypto-linked payment product without the necessary Australian Financial Services Licence, a finding that forms the cornerstone of ASIC’s enforcement narrative. The ruling confirms that presenting a digital-asset-based payment facility as a viable non-cash alternative must be backed by formal licensing and compliant disclosures, especially when investment-adjacent risks loom large.

The financial penalties reflect a dual fault line: unlicensed activity and misleading representations. The court quantified penalties at 1.3 million AUD for unlicensed conduct and 8 million AUD for statements that misled or deceived potential users or investors about the Qoin Wallet’s status, exchangeability with fiat currencies, and merchant acceptance. The judgment paints a picture of a company that pushed forward a promotional narrative without the safeguards regulators expect for financial products—narratives that could have misled consumers about both risk and liquidity. The decision also obligates BPS to cover a substantial portion of ASIC’s legal costs, underscoring the seriousness with which the regulator treats cases of this kind and signaling a broader intention to deter similar conduct in the sector.

The court’s assessment labeled the misconduct as substantial and unlawful, noting the involvement of senior management and the company’s insufficient compliance program. This finding matters because it highlights a governance threshold: when leadership shapes or tolerates misleading communications about a product that sits at the intersection of payments and investment, the accountability framework tightens. The ten-year prohibition on operating a financial services business without a licence is a stark reminder that regulatory creep—especially in crypto-adjacent services—can outlast the lifecycle of a promotional campaign. The visual embodiment of this outcome, the accompanying regulatory notice, and the binding nature of the decision collectively illustrate how penalties extend beyond the monetary domain to reshape an entity’s future operations.

The Qoin Wallet case existed within a broader enforcement arc. ASIC’s civil penalty action in 2022 and subsequent judgments—handed down in 2024 and upheld on appeal in 2025—centered on misleading assurances about regulatory approvals, fiat-exchange mechanisms, and merchant uptake. The line of rulings constructs a precedent: crypto products marketed with claims of legitimacy or broad acceptance require explicit licensure and verifiable representations. In this sense, the BPS decision is not an isolated incident; it is a milestone in the Australian regulator’s ongoing effort to align crypto offerings with traditional financial-services norms, even as the market continues to evolve rapidly around tokens and digital wallets.

Beyond punitive measures, the decision interacts with a regulatory shift that could influence how crypto firms structure their distribution strategies. December’s exemptions, intended to streamline the distribution of stablecoins and wrapped tokens, reduce the friction of licensing while increasing the emphasis on robust record-keeping. For firms operating in Australia, the shift offers a pathway to bring innovative products to market with lower compliance friction, provided they remain transparent about licensing status and maintain rigorous disclosures. That balance—between enabling innovation and preserving investor protections—appears to be a central theme for the year ahead, as regulators articulate more precise boundaries for consumer-facing crypto products.

The decision also feeds into a wider industry narrative about risk management and consumer protection in digital assets. Regulators are increasingly wary of promotional narratives that blur lines between payment functionality and investment exposure, particularly in volatile markets where pricing can swing dramatically. For users, the outcome reinforces the importance of due diligence; for firms, it underscores the need to align product marketing with licensed activities and to communicate risk in straightforward terms. For market participants watching the space, the BPS case demonstrates that licensing regimes are not optional add-ons but integral components of product design and go-to-market strategy—especially when a product sits at the crossroads of payments and asset exposure.

As the regulatory environment evolves, market watchers will likely monitor how the ongoing licensing reforms interact with enforcement actions. The combination of penalties, long-term operating bans, and mandated publicity sets a precedent that could influence corporate governance, internal compliance audits, and external communications in the crypto payments segment. In Australia’s evolving landscape, operators must anticipate a future where licensing and disclosures are non-negotiable prerequisites for product launches, promotions, and user-facing communications, shaping both the speed and style of innovation in the sector.