Regulator Wins Case Against BPS Financial in Australian Federal Court
The Australian Federal Court has issued a ruling that largely favors the country’s markets regulator in its legal battle against BPS Financial Pty Ltd (BPS) over its Qoin scheme. According to court documents, Judge J Downes concluded on Friday that the Australian Securities and Investments Commission (ASIC) was successful in its Unlicensed Conduct Case against BPS. However, the ruling did not include the period in which BPS operated as an authorized representative of PNI Financial Services Pty Ltd, which holds a non-cash payments license. ASIC has sued BPS over the Qoin scheme, alleging that it constitutes a financial product that requires a license. The court disagreed with ASIC’s argument that the Qoin Blockchain and Qoin Wallets formed a single scheme. The ruling is significant in recognizing blockchains as foundational technology separate from their legal implications. ASIC and BPS have been instructed to reach an agreement on remaining issues and penalties. Australia has been increasing its scrutiny of the cryptocurrency industry, with various regulatory actions taken against crypto firms and stricter regulations proposed for digital asset platforms.
