Australian Court Slams Qoin Wallet Operator With $14M Penalty for Unlicensed and Misleading Crypto Conduct

The Federal Court has imposed $14 million in penalties on BPS Financial after finding the company unlawfully operated and promoted its Qoin Wallet crypto product, following enforcement action by the Australian Securities and Investments Commission (ASIC). The ruling concluded that the business engaged in extended periods of unlicensed financial services activity while also misleading consumers about key aspects of the product.

BPS Financial marketed Qoin Wallet as a non-cash payment facility connected to a digital token known as Qoin. Between January 2020 and mid-2023, the company issued the product and provided related financial advice without holding an Australian Financial Services Licence.

The Court also determined that BPS made several false and misleading claims about the Qoin Wallet, including representations concerning token exchangeability and regulatory status. These findings were first established in a 2024 decision and later expanded in 2025, when the Full Federal Court ruled BPS could not rely on an authorised representative exemption under the Corporations Act.

Related: Australia’s Regulator Trains Its Sights on Crypto’s Regulatory Grey Zones

Penalties Highlight Court’s Deterrence Focus

The total penalty comprises $2 million for unlicensed conduct and $12 million for misleading and deceptive behaviour. Justice Wendy Downes found the penalties were necessary to deter both the company and the broader digital asset sector.

The judgment noted that senior management involvement and inadequate compliance systems contributed to the seriousness of the misconduct. The misleading representations were also found to have targeted consumers in a manner that heightened potential harm.

In addition to financial penalties, BPS has been permanently restrained from making false claims about Qoin Wallet usage, token convertibility or regulatory approval. The company is also barred from operating a financial services business without a licence for ten years and must publish adverse publicity notices.

ASIC said the decision reinforces expectations that crypto providers must be properly licensed and transparent when offering high-risk products.

Related: Australia’s Crypto Industry Enters Its “Training Phase” as Regulation Turns Real