In a press release dated October 25, the Australian Securities and Investments Commission (ASIC) said that BPS Financial Pty Ltd (BPS Financial) had been the subject of civil penalty proceedings for making “deceptive claims” to its 79,000 clients over its token Qoin.
The banking authority warned certain other Australian cryptocurrency issuers after taking legal action against BPS. Specifically, the accusation on the company is of “unlicensed action” in connection with Qoin, a cryptocurrency launched in October of this year. It paves the way for merchants to start accepting digital tokens as payment for their wares.
Deputy Chair take on the matter
ASIC Deputy Chair Sarah Court said the action should warn the Bitcoin industry as a whole that the regulator is vigilant in its pursuit of unethical conduct. According to her it is absolutely important to provide consumers and investors honest and correct information about cryptocurrencies since crypto-assets are exceedingly volatile, innately risky, and complicated.
She went on to say that it is impossible to make broad comparisons across cryptocurrencies since each one is different. She said that ASIC emphasises preventing fraud and misleading advertising of financial goods like crypto assets that might put consumers at risk.
The court expressed concern about BPS Financial’s alleged misrepresentation that Australian law would apply to the Qoin Facility and that tokens may be used to purchase goods and services from an increasing number of BPS-affiliated enterprises.
The Australian Government’s Crypto Sector Inquiry has Ramped up in recent months
In August, Joe Longo, head of the Australian Securities and Investments Commission (ASIC) finally voiced his worry about the number of people who continue to hold “unregulated, volatile” investments they made during the COVID-19 outbreak.
Australia’s financial regulator further said on the 17th that it had filed temporary restraining orders over three crypto funds run by Australian asset manager Holon. Filecoin (FILE), Ether (ETH), and Bitcoin (BTC) is the investment target for each of these ETFs.