As an experienced financial analyst, I closely follow the regulatory landscape of digital assets and their related businesses. The recent court decision against BPS Financial for deceptive practices in connection with its Qoin token is a significant development that underscores the need for transparency and compliance within the crypto industry.
As a crypto investor following the latest developments in the industry, I’m excited to share that the Australian Securities & Investment Commission (ASIC) has secured a court victory against BPS Financial. The company is under scrutiny for allegedly engaging in misleading and deceptive practices regarding their non-cash payment facility based on the Qoin token. This means that ASIC has successfully argued these actions were not in compliance with the regulations, bringing hope for greater transparency and trust within the crypto market.
As an analyst, I would rephrase it as follows: The Federal Court of Australia determined that BPS made four inaccurate statements regarding Qoin. To be more precise, BPS asserted that Qoin was registered or endorsed by the government, legally compliant, interchangeable with other cryptocurrencies and fiat currencies at will, and widely accepted by a expanding community of merchants.
As a crypto investor, I’ve recently learned that the court found BPS in breach of both the Corporations Act and the Australian Securities and Investments Commission Act. The judge has instructed us to meet and discuss the next moves before another hearing scheduled for this year. Possible outcomes may include imposing penalties.
In early 2020, BPS introduced Qoin as part of its ecosystem, which includes a token, blockchain, digital wallet, and payment system. The user base for Qoin comprises over 100,000 individuals, and there are approximately 36,000 registered merchants accepting it as a form of payment. As of the end of June 2021, there were around 394 million Qoin tokens circulating within this system.
As a crypto investor, I’ve come across some concerning news regarding BPS. Back in November 2021, a class action lawsuit was filed against them alleging deception, noncompliance with regulations, and operating as a pyramid scheme. To this day, that case remains open. Additionally, Qoin was expelled from the Blockchain Australia industry association back in February 2021. These developments have raised some serious red flags for me, and I would advise caution when considering investments related to these entities.
In my role as a researcher, I’d like to share that the Australian Securities and Investments Commission (ASIC) took action against BPS in October 2022. The organization announced this decision with the disclosure that it marked the first court ruling against a non-cash payment facility dealing with cryptocurrency. ASIC Chair Joe Longo expressed:
“ASIC has taken a number of enforcement actions against crypto asset businesses with the intention of clarifying what is a regulated product and when the provider needs a licence.”
In December 2022, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Finder.com for providing an unauthorized cryptocurrency yield-bearing product without holding the necessary license. The court reached a verdict in favor of Finder.com in March, and ASIC has since announced its intention to appeal this decision.
In a legal dispute between ASIC and crypto lender Block Earner, the judge decided that offerings of managed cryptocurrency products that promise returns need to be licensed, while those enabling access to decentralized finance (DeFi) through an intermediary might not.
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2024-05-03 22:00