ASIC Takes Legal Action Against BPS Financial for Misleading Qoin Token Marketing

ASIC Files Lawsuit Against BPS Financial Over Qoin Token Marketing

The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings against BPS Financial, accusing the company of misleading and deceptive conduct related to its Qoin Facility crypto asset. ASIC alleges that BPS Financial falsely represented the Qoin token as being exchangeable for other cryptocurrencies or fiat currencies and claimed it was increasingly accepted by merchants.

Misleading Claims and Regulatory Compliance

ASIC contends that BPS Financial misled over 79,000 investors by implying the Qoin Facility operated under Australian financial regulations when it was not. The regulator asserts that the number of merchants accepting Qoin has actually declined and that exchanges for the token were often not feasible.

Response from BPS Financial

BPS Financial has stated it disagrees with ASIC's allegations and plans to contest the case in court. Additionally, Qoin was removed from Blockchain Australia's membership last year, further raising questions about its credibility.

This legal action highlights the importance of regulatory compliance in the crypto market and serves as a warning to investors to scrutinize claims made by financial service providers.