Australian Federal Court Backs Crypto Lender in Landmark Win Over ASIC
The Full Federal Court of Australia ruled in favor of Block Earner, overturning previous findings that its discontinued "Earner" product required financial licensing. The Australian Securities and Investments Commission (ASIC) had appealed for penalties against Block Earner, but the appeal was dismissed, and ASIC was ordered to pay legal costs. The court determined that Block Earner's product did not qualify as a managed investment scheme or financial investment facility under the Corporations Act. Customers were found to have loaned crypto under fixed terms for interest returns, with no pooling of contributions. The ruling may impact future regulation of digital asset products in Australia, where around four million residents have crypto exposure. Block Earner voluntarily discontinued the Earner product in response to ASIC's actions and has no plans to reopen it.
