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The Australian Court has ruled in favor of the market regulator in a case against Qoin Blockchain. However, there are some details regarding the matter. The favorable decision is considered a partial victory. The focus of the case was the claim that ASIC’s Qoin Blockchain and Qoin Wallets were integrated into a single plan, which the court did not support. The court emphasized that Blockchain is not a part of financial products.
Details of the Decision
According to the decision made by the Australian Federal Court on Friday, the majority of the case related to the Qoin plan concluded in favor of Australia’s market regulator. Judge J. Downes, according to court documents and the regulator’s announcement, stated that ASIC won the Unlicensed Operation Case against BPS Financial Pty Ltd.
In 2022, ASIC initiated a legal battle against BPS, demanding that the entire Qoin project, including tokens, Blockchain, and wallets, be considered a financial product requiring a license. In Australia, ASIC sometimes achieves successes through legal processes while also losing some cases.
Court Disagrees with Single Entity View
During this case, one of ASIC’s claims was that Qoin Blockchain and Qoin Wallets should be considered as a single entity. However, the court disagreed with this view.
The decision highlighted, “Contrary to ASIC’s claims, Qoin Blockchain is a tool that business operators owning Qoin acquisition tools and Qoin Wallets can register as Qoin Customers, but it is not a component or itself a mechanism that allows non-cash payment.”
Experts noted that the court significantly rejected ASIC’s attempts to view an entire Blockchain under Australian laws as a “financial product.”
Blockchain Australia President and Digital Assets Lawyer Michael Bacina stated on the matter:
“Blockchains stand as a separate entity as fundamental technology. We emphasize that it should be recognized as a separate entity, although its use can incur criminal liability if laws are not followed. We call for negotiations to settle remaining questions, including penalties, with ASIC and BPS by the end of this month.”
