Australia court sets precedent for crypto in non-cash payments

Australia’s securities regulator, the Australian Securities & Investments Commission (ASIC), has achieved a significant legal victory in the country’s crypto market. The Federal Court ruled that BPS Financial (BPS) engaged in unlicensed conduct by offering the Qoin Wallet, a non-cash payment product that utilized the Qoin token. The court also found that BPS had engaged in misleading or deceptive conduct regarding the Qoin Wallet. This ruling sets a precedent for the regulation of crypto-based non-cash payment facilities in Australia. ASIC Chair Joe Longo emphasized that this outcome sends a clear message to the crypto industry about the need for compliance with regulatory obligations and protection of consumers. The court has ordered both parties to collaborate on determining next steps, including potential penalties. In another related case, ASIC is challenging the Federal Court’s dismissal of its case against Finder Wallet, which was accused of providing financial services without the required license.