According to a news release, BPS Financial is being sued in federal court by Australia’s markets regulator for operating an unauthorized virtual asset firm.
The Australian Securities and Investments Commission (ASIC) claimed that BPS Financial used deceptive and misleading tactics to promote the cryptocurrency asset known as Qoin Facility. The regulator claims that the firm had promised to who purchased the digital token that they would be able to exchange the Qoin token with other cryptocurrencies and fiat currency through independent exchange platforms. Also, the firm told investors that the token would be tenable to an increasing number of traders.
ASIC Deputy Chair Sarah Court argued that Contrary to what BPS claimed in its marketing, fewer merchants are accepting Qoin, and it has occasionally proved impractical to convert Qoin tokens through open exchanges.
ASIC deputy noted that the promoter is mainly interested in false claims that the Qoin Facility operated under the regulation of Australian authorities, fooling over 79,000 people and entities into investing in the token.
We claim that these defendants stole billions of dollars from small investors all around the world by taking advantage of their interest in digital assets, according to Lara Shalov Mehraban, Associate Regional Director of the SEC’s New York Regional Office.
BPS Financial, according to a media outlet, “does not agree with the ASIC’s assessment” and has vowed to challenge the issue in court. Qoin was removed from the membership list of Blockchain Australia (BCA), the premier blockchain organization in Australia, without giving a reason.
Even though the industry has called for legislation, Australia’s markets watchdog has stated that its top priority is to inform consumers of the dangers associated with cryptocurrencies. The government has also stated that it will use “token mapping” as a framework for regulation and the beginning of testing a central bank digital currency.