Australian court establishes groundbreaking legal precedent for cryptocurrency in non-cash transactions
Australia has achieved a significant legal victory in the cryptocurrency industry as its securities regulator, the Australian Securities & Investments Commission (ASIC), successfully prosecuted BPS Financial (BPS) for engaging in unlicensed conduct. The case revolved around the Qoin Wallet, a non-cash payment product that utilized the Qoin token.
According to a press release issued on May 3, ASIC revealed that the Federal Court ruled in favor of the regulator, determining that BPS had operated without the necessary financial services license and lacked authorization from a license holder to issue or provide financial advice regarding the Qoin Wallet.
The court’s decision also shed light on the fact that BTX, the sole cryptocurrency exchange accepting Qoin tokens, lacked independence from BPS and did not support the exchange of various altcoins.
ASIC Chair Joe Longo emphasized the significance of this ruling, as it represents the first legal action taken against a crypto-based non-cash payment facility. He further stated that this case should serve as a warning to the crypto industry, indicating that ASIC will continue to scrutinize their products to protect consumers and ensure regulatory compliance.
The court has instructed both parties to collaborate in determining the next steps for further hearings, which will address remaining issues including penalties. A date for the hearing will be scheduled later in 2024.
In a separate development, ASIC is seeking to challenge the Federal Court’s dismissal of its case against Finder Wallet, a subsidiary of Finder.com. The lawsuit, initiated in December 2022, accused Finder Wallet of offering financial services without holding an Australian Financial Services license.
In related news, Australia is planning to launch spot Bitcoin ETFs by the end of 2024, according to Bloomberg.
