Australian crypto market supervisors have commenced legal actions against BPS Financial Limited over “misleading campaign advertisement.
According to an October 25 official publication, the Australian Securities and Investments Commission(ASIC) has begun court proceedings against BPS Financial’s “false, misleading or deceptive representations” of the Qoin asset to its 79,000 customers.
BPS Financial told its users that the Qoin token can be swapped for other digital properties as well as the nation’s legal tender currency (Australian dollars) through “independent exchanges” and that an accumulated number of traders welcomes it, the publication stated.
Nonetheless, the ASIC has contended that “there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges” and the number of traders that accept it has declined.
Qoin has also been misrepresented to have attained a rapidly thriving ecosystem, the ASIC noted.
The national regulatory commission has urged that the court rules Qoin as a monetary product that needs official authorization.
“We believe that more than 79,000 individuals and entities who have been issues with the Qoin facility may have believed it was compliant with financial service laws,” the Court added in the publication.
BPS Financial has notified that “it will be defending the matter” as an opposition to the ASIC’s standing.
Australian crypto regulatory bodies have formerly specified their outlined objectives to notify crypto participants about the dangers included.