The Federal Court of Australia has ruled in favor of fintech company Block Earner in an appeal against a decision that mandated it to possess a financial services license for its former crypto-related offerings. According to the court, Block Earner’s crypto-connected fixed-yield earning product does not fall under the category of a financial product, managed investment scheme, or derivative as per the Corporations Act. The court emphasized that the product’s structure, where users loaned crypto for fixed interest payments without pooling contributions, defined it as a loan rather than an investment. Consequently, Block Earner has been cleared of the legal proceedings brought by the Australian Securities and Investment Commission (ASIC), with the regulator instructed to cover the costs of the case. Block Earner’s chief commercial officer highlighted the importance of treating crypto assets like any other asset class under existing laws. Despite the court victory, the Earner product will not be relaunched, and the company will continue to focus on crypto-backed loan products. ASIC initiated legal action in November 2022, claiming that Block Earner needed an Australian Financial Services License for its crypto yield-bearing products. Following earlier rulings in February 2024 and June 2024, which initially favored ASIC, the recent court decision has provided clarity for the future regulatory landscape in Australia.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Court of Australia has ruled in favor of fintech company Block Earner in an appeal against a decision that mandated it to possess a financial services license for its former crypto-related offerings. According to the court, Block Earner’s crypto-connected fixed-yield earning product does not fall under the category of a financial product, managed […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[25],"tags":[],"aioseo_notices":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":""},"author_info":{"display_name":"","author_link":"https:\/\/vanillanews.com\/index.php\/author\/"},"category_info":"JUST IN<\/a>","tag_info":"JUST IN","comment_count":"0","_links":{"self":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/105847"}],"collection":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/comments?post=105847"}],"version-history":[{"count":0,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/105847\/revisions"}],"wp:attachment":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/media?parent=105847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/categories?post=105847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/tags?post=105847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}