The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against BPS Financial (BPS) for allegedly engaging in the unlicensed trade of the crypto-asset token, Qoin. They marketed via making false, misleading, or deceptive assertions, according to the press release published on Tuesday.
The Australian regulatory asserts that BPS misrepresented several facts while promoting the Qoin Facility. Such as the assurance given to customers who bought Qoin that they can trade them for fiat money. Also, trade them on other cryptocurrencies on reputable exchanges.
In addition, the company claimed that the Qoin Facility and the Qoin wallet application used to transact coins are regulated, registered, and approved in Australia. Further the facilities meet Australian regulations for financial services law.
The company further asserts that the coins can also be used to purchase goods or even services from an ever-growing number of merchants enrolled with BPS, as per the press release.
ASIC Deputy Chair Sarah Court said in the press release:
We allege that, despite what BPS represented in its marketing, Qoin merchant numbers have been declining and that there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges.
Moreover, Sarah also stated that the ASIC is concerned about misrepresenting whether Qoin Facilities complies with regulatory guidelines. According to Sarah, there are over 79,000 people who were tricked into believing these facilities were recognized when in fact, they were not.
However, according to the press release statement:
ASIC is seeking declarations, pecuniary penalties, injunctions, and adverse publicity orders from the Court.
ASIC Action Expands In Australia
The regulator said on October 17 that due to non-compliant target market determinations. It had issued temporary stop orders banning Holon Investments Australia Limited (Holon) from marketing or dispersing three funds to retail investors (TMDs).
However, the temporary orders prohibit Holon from offering interests in, disclosing a product to retail clients, or advising them generally to invest in the Funds. Unless it cancels sooner, the order is valid for 21 days.
In addition, these funds are Holon Filecoin Fund ARSN 659 090 614, Holon Filecoin Fund ARSN 659 090 294, and Holon Ethereum Fund ARSN 659 090 516.
The regulatory said:
ASIC made the interim orders to protect retail investors from potentially investing in funds that may not be suitable for their financial objectives, situation or needs.
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Moreover, ASIC believes that the funds are not appropriate for the broad target market specified in the TMDs. It includes investors with a possible medium, high, or very high risk and returns profile, according to the release.
Nevertheless, Australia has spent $250 million on cryptocurrency fraud and scams so far this year. Additionally, Australian senator Andrew Bragg has put out a crypto bill to control the category of digital assets.
As the private market investment increases, the nation has also joined the list of countries proposing a CBDC to increase e-AUD transactions.