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.
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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.
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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.