What fine does the Australian court impose on BPS Financial for illegal cryptocurrency transactions

The Australian Federal Court has issued a ruling that has serious consequences for BPS Financial. How much fine did the financial firm face? The court imposed a sanction of 14 million AUD for a series of regulatory violations related to the Qoin Wallet product and providing financial services without the necessary license.

The amount of sanctions and the nature of violations

The financial penalty consists of several components. ASIC (Australian Securities and Investments Commission) justified the fine with two main categories of violations: providing financial services without a license assessed at 1.3 million AUD, while issuing misleading and false statements cost the company 8 million AUD. Such a fine reflects the seriousness of violations of Australian financial legislation.

Details of illegal activity involving Qoin Wallet

BPS Financial violated Australian law for three years—from January 2020 to mid-2023. During this period, the financial firm promoted and operated the Qoin Wallet product, providing financial advice and offering digital services without regulatory approval. Investigations revealed that senior management was directly involved in illegal activities, and internal compliance systems were ineffective and insufficient.

ASIC intensifies control over financial services

This court decision demonstrates the active approach of the Australian regulator in overseeing companies operating in the digital assets and innovative financial products sector. ASIC clearly expressed its dissatisfaction, classifying BPS’s actions as “serious and illegal behavior,” warranting strict sanctions. Such a fine also serves as a warning to other market players and a signal of increased licensing and transparency requirements.

Long-term consequences for BPS Financial

In addition to paying the fine, the court will impose significant restrictions on the company’s activities. BPS Financial is prohibited from providing any financial services without a license for the next decade. The company must also publish official court notices on its website and in the Qoin Wallet app, ensuring transparency about its legal situation to users. Furthermore, BPS is obliged to cover most of ASIC’s legal costs, significantly increasing the financial pressure on the organization.

This case underscores the critical importance of complying with regulatory requirements in the cryptocurrency and financial sectors, demonstrating that the size of the fine imposed by the Australian regulator depends on the scale and severity of violations. For other companies operating in the digital financial space, this decision serves as a reminder of the necessity to adhere to Australian legislation and maintain transparent interactions with regulatory authorities.