Legally, BPS did not have the proper financial services license “nor was authorised by a licence holder, to issue or provide financial advice about the Qoin Wallet,” according to an ASIC news release dated May 3, which stated that the court had reached this conclusion.

“Justice Downes also found BPS engaged in misleading or deceptive conduct and made false or misleading representations concerning the Qoin Wallet.” ASIC stated.

The decision brought attention to the fact that BTX, the only cryptocurrency exchange taking Qoin tokens, was dependent on BPS and did not permit the trade of different cryptocurrencies.

The verdict, which is the first court case against a crypto-based non-cash payment facility, was highlighted by ASIC Chair Joe Longo as being of great significance. “The proceedings should send a message to the crypto industry that their products will continue to be scrutinized by ASIC to ensure consumers are protected and that they comply with regulatory obligations,” he continued, adding.

Both sides are required by the court’s order to collaborate in order to plan future sessions that will resolve outstanding matters, including penalties. Later in 2024, a date will be chosen for the hearing.

Meanwhile, Finder Wallet, a division of Finder.com, is under investigation by ASIC, which has decided to pursue the Federal Court’s dismissal of the regulator’s case. Finder Wallet was accused in the December 2022 lawsuit of offering financial services without an Australian Financial Services license.

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