The Australian Federal Court has imposed a $9.9 million fine on BPS Financial Pty Ltd for misleading advertising related to its Qoin cryptocurrency wallet. The court found that BPS Financial falsely claimed that Qoin was widely accepted by merchants and could be easily exchanged for Australian dollars or other cryptocurrencies. This ruling, following action by the Australian Securities and Investments Commission (ASIC), marks one of the largest penalties against a crypto business in Australia for deceptive practices.
The court's decision highlights a global trend of holding crypto companies to the same advertising standards as traditional financial entities. BPS Financial's claims about Qoin's utility and liquidity were found to be largely unfounded, setting a precedent for consumer protection in the fintech sector. This enforcement action is expected to prompt other crypto firms to review their marketing practices to ensure compliance with advertising regulations.
Australian Court Fines BPS Financial $9.9M for Misleading Qoin Ads
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