CJ - Cryptocurrency Specialist
ASIC started legal action against BPS Financial for civil penalties
ASIC deputy alleged that around 79,000 people were duped by BPS
According to a news release, the Australian markets regulator sued BPS Financial in federal court for operating an unauthorized virtual asset firm.
ASIC, the Australian Securities and Investments Commission, said that BPS Financial had marketed a crypto asset called Qoin Facility through misleading and fraudulent tactics. The regulator said that the business made a promise to customers who bought Qoin tokens that they would be able to trade crypto token for fiat money or other crypto assets on unaffiliated platforms. The regulator claims that the company allegedly informed clients that a growing number of retailers would accept the token. Contrary to what BPS implied in its marketing, Qoin merchant numbers have been declining, and there have been instances where exchanging Qoin tokens through independent cryptocurrency exchanges has not been practical.
The ASIC deputy made an interesting observation, noting that the agency is primarily worried about a misleading representation that the Qoin Facility operated under the supervision of Australian authorities, which deceived over 79,000 individuals and organizations into buying crypto token.
We suspect that more than 79,000 recipients of the Qoin Facility may have believed in error that it complied with financial services legislation. According to a media source, BPS Financial "does not agree with the ASIC's assessment" and has pledged to litigate the matter. Without providing a justification, Blockchain Australia (BCA), Australia's leading blockchain organization, withdrew Qoin off its membership list.