The Australian Federal Court issued a ruling on Friday, siding with the Australian Securities and Investments Commission (ASIC) in a case involving Qoin, an unlicensed cryptocurrency platform accused of deceiving customers.
Qoin entered the Australian market in early 2020, promising significant returns to investors. Among its claims was the assertion that its Qoin Wallet was officially registered, which turned out to be untrue.
The court found that a Gold Coast cryptocurrency promoter, BPS Financial, allegedly violated the law by promoting an unlicensed cryptocurrency wallet. The firm misled customers by offering the ‘Qoin Wallet,’ a non-cash payment facility utilizing a cryptocurrency token called ‘Qoin.’
ASIC Chair Joe Longo emphasized the highly volatile and risky nature of cryptocurrency assets, underlining the necessity of obtaining proper licenses.
“It is of utmost importance that providers obtain the necessary licenses and authorizations, and that investors receive accurate and transparent information,” said Longo.
Longo also highlighted ASIC’s ongoing enforcement actions against unlicensed cryptocurrency businesses.
Justice Downes observed that BPS Financial breached the Corporations Act by operating without an Australian Financial Services license. Additionally, the firm was found to have misled customers with false representations regarding the Qoin Wallet.
