The Australian Securities and Investments Commission (ASIC) has taken legal action against financial service provider BPS Financial Pty Ltd (BPS). BPS was indicted for making misleading and deceptive statements about the Qoin token, and for also engaging in unlicensed conduct.
According to the announcement made on Tuesday, there are already civil penalty proceedings against BPS in the Federal Court. The Qoin token was launched in 2019 for merchants to use as a means of payment for goods and services.
The promoter of the token (BPS) gave users a representation that they could exchange it for any other crypto assets.
Also, they were made to believe that such exchanges even to fiat currency could be done via independent crypto exchanges. There is an increasing number of merchants registered with BPS who accept the Qoin token, the financial service provider claimed. Meanwhile, the number of merchants permitting the use of the Qoin token is declining.
Furthermore, BPS deceived the users into believing that the Qoin facility was regulated, and in compliance with financial service laws. In response to these false, misleading, and deceptive statements by BPS, Sarah Court, the Deputy Chair of ASIC commented.
“We allege that, despite what BPS represented in its marketing, Qoin merchant numbers have been declining, and that there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges.
ASIC is particularly concerned about the alleged misrepresentation that the Qoin Facility is regulated in Australia, as we believe the more than 79,000 individuals and entities who have been issued with the Qoin Facility may have believed that it was compliant with financial services laws, when ASIC considers it was not,” Court said
Australia Holds Compliance in High Regards
Additionally, she announced that the Aussie regulator will keep hauling out non-complaint crypto firms that tries to conduct misleading promotions. Considering the volatile nature of digital assets including the risks involved, ASIC intends to keep crypto customers safe from harm.
Therefore, they urge investors to provide honest and accurate information to customers to enable them make the right investment decisions.
Similarly, Facebook parent company was sued by the Australian Competition and Consumer Commission (ACCC) for allowing crypto scam ads. The misconduct was a breach of extant laws of Australian Consumer Law (ACL) and the Australian Securities and Investments Commission Act (ASIC Act).
To ensure such compliance are met, Aussie financial regulator issued an operational license to BTC Markets to legally trade digital assets.