Australia’s securities regulator, ASIC, has achieved its first court victory, establishing a precedent in the local crypto market. The Federal Court found that BPS Financial engaged in unlicensed conduct by offering the Qoin Wallet, a non-cash payment product utilizing the Qoin token.

The court ruled that BPS lacked the necessary financial services license to provide the Qoin Wallet and engaged in misleading and deceptive conduct. This landmark ruling showcases the regulatory scrutiny faced by the crypto industry in Australia.

Key points to note from the court ruling:

– BPS Financial was found to be operating without a required financial services license.
– The court determined that BPS engaged in misleading or deceptive conduct regarding the Qoin Wallet.
– BTX, the crypto exchange accepting Qoin tokens, was found lacking in independence from BPS.

ASIC Chair Joe Longo emphasized the importance of this ruling, as it sets a precedent for future cases involving crypto-based non-cash payment facilities. This decision highlights ASIC’s commitment to protecting consumers and ensuring regulatory compliance within the cryptocurrency industry.

In a separate development, ASIC is challenging the Federal Court’s decision to dismiss a case against Finder Wallet for providing financial services without the necessary license. The regulatory landscape for cryptocurrencies in Australia continues to evolve, with ongoing scrutiny and enforcement actions.

This ruling serves as a reminder to the crypto industry that compliance with regulatory obligations is essential. The court has instructed both parties to determine the next steps for further hearings, including potential penalties. Stay informed about the evolving regulatory landscape in Australia and explore more news on Global Crypto News.

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