Australia’s top court sides with Block Earner, dismisses financial regulator's suit
The Federal Court of Australia ruled in favor of fintech firm Block Earner, stating its crypto-linked fixed-yield earning product does not require a financial services license. The court determined that the product is not a financial product, managed investment scheme, or derivative under the Corporations Act. Users loaned crypto under fixed terms for interest payments without pooling contributions, which defined the arrangement as a loan. The Australian Securities and Investment Commission (ASIC) must pay costs for the proceedings and is considering the decision. Despite the ruling, Block Earner will not revive its Earner product but will focus on crypto-backed loans. ASIC had previously argued that Block Earner needed a financial services license for its products, leading to legal proceedings initiated in November 2022.
