Australia Fines Qoin Wallet Operator $14 Million for Unlicensed Activity

SYDNEY, AUSTRALIA – Australian financial regulators have imposed a substantial $14 million (AUD) penalty on BPS Financial Pty Ltd, the operator behind the controversial Qoin digital wallet and exchange. The Federal Court ruling found that BPS Financial engaged in widespread unlicensed financial services activity, significantly breaching the Corporations Act.

The regulatory investigation centered on BPS Financial’s operation of the Qoin ecosystem, a digital trade exchange often promoted as an alternative currency or digital asset. The court determined that BPS Financial had operated the Qoin scheme as an unregistered Managed Investment Scheme (MIS) and provided unlicensed financial product advice to consumers regarding the purchase and use of the Qoin token.

Regulators stated that the company failed to hold the requisite Australian Financial Services (AFS) license, which is mandatory for entities promoting and advising on such financial products. This failure meant that BPS Financial circumvented vital consumer protection mechanisms, including adequate risk disclosure, complaints handling procedures, and compliance with anti-money laundering (AML) protocols.

The fine underscores a growing regulatory intolerance for digital asset platforms that attempt to structure their offerings to bypass established licensing regimes. A spokesperson for the regulator emphasized that the ruling sends a clear message that consumer protection standards apply regardless of whether the product utilizes traditional or novel digital technology. BPS Financial has been ordered to pay the fine and cease all operations related to the unregistered scheme immediately.

Source: Australia Fines Qoin Wallet Operator $14 Million for Unlicensed Activity