An Australian court ruled in 4 cases against Qoin issuer BPS Financial
The Australian Securities and Investments Commission (ASIC) has won a court case against BPS Financial. The organization committed fraudulent activities in relation to its non-cash payment facility powered by the Qoin token.
The Federal Court of Australia found that BPS had made four false claims. Specifically, BPS said Qoin is government-registered or approved, legally compliant, freely exchangeable for other crypto assets or fiat, and 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 commit to next steps, which could include fines, before another hearing occurs this year.
BPS launched Qoin in January 2020. According to its website, the Qoin ecosystem includes the token, the blockchain, the wallet, and a “payment facility.” Qoin has more than 100,000 users and 36,000 registered merchants, and at the end of June 2021, there were 394 million Qoin tokens in circulation, he added.
In November 2021, a class action lawsuit was filed against BPS for cheating, non-compliance with regulations and being a pyramid scheme. It looks like the case will remain open. Qoin was expelled from the Australian Blockchain Industry Association in February 2021.
ASIC launched its action against BPS in October 2022. According to the statement, the decision of the court is the first decision of crypto on non-cash payment institutions. ASIC Chairman Joe Longo said:
“ASIC has taken a number of enforcement actions against crypto asset businesses with a view to clarifying what constitutes a regulated product and when a provider needs a licence.”
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ASIC sued financial product comparison website Finder.com in December 2022 for offering an unlicensed cryptocurrency offering. The tribunal ruled against ASIC in March and ASIC is appealing that decision.
In ASIC's case against crypto lender Agner, the court ruled that regulated crypto products may not “pass” a legal entity, such as decentralized finance (DeFi), even though they require a license.
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