The Australian Securities and Investments Commission (ASIC), Australia’s securities regulator, has won its first court case, setting a major new standard for the use of cryptocurrency in non-cash payments.
Australia’s Federal Court made a landmark decision in the world of cryptocurrencies when it found BPS Financial (BPS) guilty of illegal activities with the Qoin Wallet, a way to pay without cash using the Qoin coin.
ASIC said in a statement made on May 3 that the court found BPS did not have the required financial services license and was not authorized by any licensed entity to issue or offer financial advice about the Qoin Wallet.
Justice Downes also found BPS engaged in misleading or deceptive conduct and made false or misleading representations concerning the Qoin Wallet. ASIC
Crypto Exchange BTX Under ASIC Scrutiny
The decision focused on BTX, which was the only cryptocurrency exchange that accepted Qoin tokens because it was too dependent on BPS and didn’t make it easy to trade other cryptocurrencies.
ASIC Chair Joe Longo stressed the importance of the decision, saying that it was the first time a court had ruled against a cryptocurrency-based non-cash payment method. Longo said again that these lawsuits send a strong message to the exchange business, stressing that ASIC will continue to watch it closely to protect consumers and ensure that rules are followed.
The court told both sides to work together to plan further meetings to address any unresolved issues, such as penalties. The hearing date is likely to be set later in 2024.
ASIC is also actively trying to appeal the Federal Court’s decision to throw out its case against Finder Wallet, a company related to Finder.com. The case, filed in December 2022, said that Finder Wallet performed financial services without having an Australian Financial Services license.
