{"id":11124,"date":"2024-05-06T23:48:31","date_gmt":"2024-05-06T23:48:31","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/clearer-regulations-australian-watchdog-wins-first-crypto-non-cash-payment-case\/"},"modified":"2024-05-06T23:48:31","modified_gmt":"2024-05-06T23:48:31","slug":"clearer-regulations-australian-watchdog-wins-first-crypto-non-cash-payment-case","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/clearer-regulations-australian-watchdog-wins-first-crypto-non-cash-payment-case\/","title":{"rendered":"Clearer Regulations? Australian Watchdog Wins First Crypto Non-Cash Payment Case"},"content":{"rendered":"

Recent reports revealed that the Australian Securities and Investment Commission (ASIC) was granted its first victory on a non-cash payment case involving cryptocurrencies. Per the documents, an Australian court ruled partially in favor of the watchdog\u2019s lawsuit against BPS Financial Pty Ltd (BPS).<\/p>\n

<\/span>\u201cQoin Scheme\u201d Earns $26 Million In Sales<\/span><\/h2>\n

In 2022, ASIC initiated<\/a> civil penalty procedures against BPS for alleged \u201cmisleading, false or deceptive\u201d advertising and engaging in unlicensed operations with a non-cash payment facility involving a crypto asset token.<\/p>\n

The Australian regulator claimed that the Qoin Facility was a \u201cnon-cash payment facility\u201d established by the company in 2020. The \u201cQoin scheme\u201d included the Qoin tokens, the Qoin Wallet, and a distributed digital ledger implemented by blockchain technology.<\/p>\n

Moreover, ASIC alleged that BPS promoted the tokens to retail consumers and business owners as a payment method for \u201cgoods and services offered by Qoin Merchants.\u201d<\/p>\n

Nonetheless, the tokens could only be traded on the BTX Exchange, operated by Block Trade Exchange Pty Ltd (BTX), a company under BPS. The crypto exchange seemingly only allowed trading Qoin tokens for Australian dollars, and over time, it allegedly imposed restrictions that limited the ability to exchange the token.<\/p>\n

According to the press release, the Qoin Wallet had over 93,000 users by September 2022. Additionally, it received over AU$40 million, around $26.5 million, from Qoin token sales.<\/p>\n

<\/span>Court Rules In Favor Of Watchdog<\/span><\/h2>\n

On May 3, 2024, the Australian Federal Court found that BPS was guilty of most of the charges leveled by ASIC. Judge J Downes ruled<\/a> that the company \u201cengaged in unlicensed conduct when offering the \u2018Qoin Wallet,\u2019 a non-cash payment facility which used a crypto-asset token.\u201d<\/p>\n

Judge Downes considered that BPS broke the Corporations Act for at least 10 months in 2020 as it did not hold an Australian Financial Services License. As a result, the company was not authorized to \u201cissue or provide advice about the Qoin Wallet.\u201d<\/p>\n

Moreover, the judge found that the company engaged in misleading marketing and representation of the product. The reasons for this ruling include BPS\u2019s false claims that the Qoin Wallet was officially registered and that said wallet could be used to purchase goods and services from an \u201cincreasing number of Qoin Merchants\u201d when it was declining.<\/p>\n

<\/p>\n

Additionally, the Court found that the only crypto exchange that accepted Qoin before November 2021 was the BTX exchange. This contradicted the claims that Qoin tokens could be traded for other crypto assets or AUD from different exchanges.<\/p>\n

Clearer Regulatory Framework For Crypto?<\/p>\n

ASIC Chair Joe Longo deems this \u201ca significant ruling as the first court outcome against a non-cash payment facility involving crypto.\u201d \u00a0However, the Court did not agree with all of ASIC\u2019s arguments against BPS.<\/p>\n

According to the official document, Judge Downes disagreed with the regulator\u2019s claim that the Qoin Wallet and the Qoin Blockchain were one single scheme as part of the Qoin Facility:<\/p>\n

\n

Contrary to ASIC\u2019s submissions, the Qoin Blockchain, a means of acquiring Qoin and a means whereby business operators who hold Qoin Wallets can register as Qoin Merchants are not components of, and are not themselves, the mechanism which allows the user to make the non-cash payment.<\/p>\n<\/blockquote>\n

The Court\u2019s rejection becomes a crucial ruling against the regulator\u2019s attempt to classify blockchain technology as a financial product under Australian law. According to ASIC\u2019s Chair, the agency has taken several enforcement actions against crypto asset businesses \u201cwith the intention of clarifying what is a regulated product and when the provider needs a license.\u201d<\/p>\n

Lastly, Longo added that the enforcements are meant as a message to the crypto community:<\/p>\n

\n

These 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.<\/p>\n<\/blockquote>\n

\"crypto,<\/p>\n","protected":false},"excerpt":{"rendered":"

Recent reports revealed that the Australian Securities and Investment Commission (ASIC) was granted its first victory on a non-cash payment case involving cryptocurrencies. Per the documents, an Australian court ruled partially in favor of the watchdog\u2019s lawsuit against BPS Financial Pty Ltd (BPS). \u201cQoin Scheme\u201d Earns $26 Million In Sales In 2022, ASIC initiated civil […]<\/p>\n","protected":false},"author":1,"featured_media":11125,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Clearer Regulations? Australian Watchdog Wins First Crypto Non-Cash Payment Case - Bitrabo","description":"Recent reports revealed that the Australian Securities and Investment Commission (ASIC) was granted its first victory on a non-cash payment case involving crypt"},"footnotes":""},"categories":[316],"tags":[603,796,1550,504,3924,631,720,800,1685],"class_list":["post-11124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-australian","tag-case","tag-clearer","tag-crypto","tag-noncash","tag-payment","tag-regulations","tag-watchdog","tag-wins"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=11124"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/11125"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=11124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=11124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=11124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}