Australian Court Imposes $14 Million Fine on BPS Financial for Regulatory Breaches

An Australian federal court has ordered financial services company BPS Financial to pay a fine of 14 million AUD for violations related to the promotion and operation of its Qoin Wallet product. According to PANews, the penalties include approximately 1.3 million AUD for operating financial services without a license and 8 million AUD for making misleading and deceptive statements. The Australian Securities and Investments Commission (ASIC) accused BPS of issuing the product and providing financial advice without holding an Australian financial services license from January 2020 to mid-2023, in violation of the Corporations Act. The court found that senior executives were involved and that the company's compliance systems were deficient, constituting "serious and unlawful conduct." In addition to the fines, BPS is prohibited from operating financial services without a license for the next ten years. The company is also required to publish court-mandated notices on the Qoin Wallet app and website and cover most of ASIC's legal costs.