The Australian Securities and Investments Commission (ASIC) has won a case against BPS Financial. The company has been accused of deceptive practices in connection with its non-cash payment service powered by the Qoin token.

The Federal Court of Australia found BPS made four misleading claims. BPS claimed that Qoin is registered or approved by the government, is legal, can be freely exchanged for other cryptoassets or fiat, and is accepted by a growing network of merchants.

The court ruled that BPS had breached the Corporations Act and the Australian Securities and Investments Commission Act. He ordered the parties to discuss next steps ahead of another hearing later this year, which could include penalties.

BPS launched Qoin in January 2020. According to its website, the Qoin ecosystem includes the token, blockchain, wallet and a “payment service.” Qoin has more than 100,000 users and 36,000 registered traders, and there were 394 million Qoin tokens in circulation at the end of June 2021.

A lawsuit was filed against BPS in November 2021 on charges of misleading, failing to comply with regulations and being a pyramid scheme. This case seems clear. Qoin was removed from the Blockchain Australia industry association in February 2021.

ASIC began its action against BPS in October 2022. According to his statement, the court decision in his favor was the first against a crypto-related non-cash payment service. ASIC Chairman Joe Longo said:

“ASIC has imposed a range of sanctions against crypto asset businesses in an attempt to clarify what a regulated product is and when a provider requires a licence.”

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