Australian Court Slaps Crypto Firm With Fine Over Misleading Claims

[Ben Graham]

Unfortunately, crypto cannot thrive without regulation. Compliance with existing laws provides the necessary plumbing for growth and smooth operations. The US and Europe are keen on drafting laws to regulate this multi-trillion-dollar industry, and regulators across the world now move faster and hit harder when marketing crosses the line.

Recently, an Australian federal court fined crypto firm BPS Financial after finding it misled investors about a token tied to its platform. The ruling, finalized in late January 2026, is a clear signal that the “authorized representative” loophole and aggressive marketing claims will no longer fly, especially in Australia.

Even after this ruling, the Bitcoin price is still capped below $90,000. Traders are upbeat, expecting the digital gold to follow gold and precious metals. However, before this phase, buyers must clear $90,000 and $95,000.

Market Cap

24h 7d 30d 1y All Time

DISCOVER: 9+ Best Memecoin to Buy in 2026

What Did BPS Financial Do Wrong?

The Federal Court of Australia found that BPS misled investors on three critical fronts between 2020 and 2023.BPS claimed Qoin tokens could be easily swapped for cash or other crypto assets on independent exchanges. In reality, no such independent exchanges existed for Qoin.

Additionally, their marketing implied that the Qoin Wallet was approved by the government, giving it a false sense of legitimacy that never existed. BPS went further to falsely advertise that the number of merchants accepting Qoin was growing. Evidence showed the merchant base was actually in a persistent state of decline by late 2021.

In their defense, BPS tried to claim they didn’t need their own license because they were authorized by other license holders. The court rejected this, ruling that the firm was acting on its own behalf, not as a representative. As such, this position effectively closed a common “regulatory arbitrage” tactic used by crypto startups.

Following this, the Australian federal court ordered them to pay $9.3M. Nearly +90% of this penalty was to pay for their marketing lies. The remainder was for their operation without an Australian Financial Services License (AFSL).

Beyond the money, BPS is now banned from providing financial services without a license for the next decade and must display adverse publicity notices on its own apps and websites.

DISCOVER: Best Meme Coin ICOs to Invest in 2026

Why This Ruling Matters

For everyday investors, this case is less about one company and more about a clear warning. Words on a crypto website carry legal weight now. And courts are willing to punish firms that blur the truth. BPS Financial promoted a digital token in a way the court said misrepresented what buyers were getting. Simply put, their marketing promised features and protections that did not exist. That gap between promise and reality triggered the fine.

This matters because many beginners rely on websites and whitepapers when choosing their first crypto. If those claims stretch the truth, your money carries more risk than you realize. Regulators see crypto ads as financial advice by another name. When a firm markets a token like a safe investment, authorities step in.

A Win for ASIC?

Following the court ruling, some Australian Securities and Investments Commission (ASIC) officials were quite vocal. Chair Joe Longo said the massive fine was intended to be a “shock” and a “strong message” to the system and the crypto scene in Australia.

He added that due to crypto’s high volatility, complexity, and “inherent risk”, providers and other facilitators should have a higher “burden of proof.” This will allow investors to make decisions based on “clear and correct statements.”

“Given the nature of these products, providers must have the appropriate licenses and authorizations, and investors must be able to make decisions based on clear and correct statements, especially as crypto products can be highly volatile, inherently risky, and complex. The digital asset industry is well on notice that its products will continue to be a focus for ASIC. We want to encourage innovation and new services for consumers, but not at their expense.”

The BPS ruling comes as a relief to ASIC. In early 2024, they took on Finder, a comparison site, claiming that its “Finder Earn” product was an unlicensed loan. However, their appeal in 2025 was dismissed after the court found the product to be compliant withe existing laws.

DISCOVER:

• 16+ New and Upcoming Binance Listings in 2026
• 99Bitcoins’ Q4 2025 State of Crypto Market Report

Follow 99Bitcoins on X For the Latest Market Updates and Subscribe on YouTube For Daily Expert Market Analysis.

The post Australian Court Slaps Crypto Firm With Fine Over Misleading Claims appeared first on 99Bitcoins.