ASIC commences first Australian Court action on crypto assets as unlicensed financial products
Hello there.
ASIC has issued civil penalty proceedings for making false, misleading and deceptive representations and engaging in an unlicensed conduct regarding a non-cash payment facility involving a crypto-asset.
Following in the first wave of global-prosecutions by regulators (such as the recent Do Kwan lawsuit in Singapore, and SEC prosecutions relating to Chicago Crypto Capital, The Australian Securities Investment Commission (ASIC) has recently issued civil penalty proceedings against BPS Financial Pty Ltd (BPS) for making false, misleading and deceptive representations and engaging in unlicensed conduct regarding a non-cash payment (NCP) facility involving a crypto-asset token called Qoin. This is an important signal to any crypto asset issuers and dealers or crypto market operators in Australia that ASIC is now actively pursuing crypto companies that do not have Australian Financial Service licences (AFSL).
An NCP facility is an arrangement through which a person makes payments, or causes payments to be made, other than by the physical delivery of currency. ASIC has determined that Qoin’s digital wallet and exchange services, together with its issued token the Qoin token. For more information on how Australian law applies to crypto assets including whether you are operating a managed investment scheme see Information Sheet 225.
ASIC Deputy Chair Sarah Court said:
‘Where it falls within our remit, ASIC will take targeted action against unlicensed conduct and misleading promotion of crypto-asset financial products that could harm consumers – this is a key priority for ASIC. Crypto-assets are highly volatile, inherently risky, and complex. Every crypto-asset is different, often making it difficult to compare with each other – or anything else. This makes it crucially important that investors are provided with honest and accurate information.’
For further detail on ASIC’s allegations on false, misleading or deceptive representations by BPS see here.
An NCP facility is an arrangement through which a person makes payments, or causes payments to be made, other than by the physical delivery of currency. ASIC has determined that Qoin’s digital wallet and exchange services, together with its issued token the Qoin token. For more information on how Australian law applies to crypto assets including whether you are operating a managed investment scheme see Information Sheet 225.