As a seasoned crypto investor with a keen interest in regulatory developments down under, I’m thrilled to see the Australian Securities and Investments Commission (ASIC) secure its first court victory regarding unlicensed conduct involving cryptocurrency. This landmark ruling against BPS Financial (BPS) sets an important precedent for the local crypto market.
Australia’s securities regulatory body secured its initial court win, establishing a significant legal precedent concerning cryptocurrency’s non-cash payment system.
The Australian Securities and Investments Commission (ASIC) has established a significant legal milestone within the Australian crypto market. Following a ruling by the Federal Court, BPS Financial (BPS) has been identified for breaking the law by providing the Qoin Wallet – a non-cash payment solution utilizing the token Qoin – without proper authorization.
On May 3rd, ASIC announced that the court found BPS didn’t have the required license for providing financial services related to the Qoin Wallet. Additionally, they weren’t acting under the authorization of a licensed holder in offering or advising about this wallet.
Justice Downes determined that BPS had acted deceitfully, making false or misrepresented claims regarding the Qoin Wallet.
ASIC
The judgment brought to light the fact that BTX, being the lone cryptocurrency exchange dealing with Qoin tokens, failed to maintain its autonomy from BPS and only supported trading with those tokens, excluding other altcoins.
Joe Longo, chair of ASIC (Australian Securities and Investments Commission), emphasized the importance of the recent court decision, signaling the first legal action taken against a cryptocurrency-based non-cash payment system. Furthermore, he noted that this case serves as a warning to the crypto industry, emphasizing that their offerings will remain under close scrutiny by ASIC to safeguard consumers and ensure regulatory compliance.
The court has directed us to collaborate on deciding the proceedings for upcoming hearings, which are intended to tackle outstanding matters such as penalties. A specific date for these hearings will be established towards the end of 2024.
In a new turn of events, ASIC is planning to contest the Federal Court’s ruling that dismissed its case against Finder Wallet, a subsidiary of Finder.com. The legal action was commenced in December 2022 and alleged that Finder Wallet had been operating financial services without possessing an Australian Financial Services license.
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2024-05-03 11:44