The Australian Securities and Investments Commission (ASIC) has applied to the High Court of Australia for leave to appeal a Federal Court ruling in favor of fintech firm Block Earner. Here’s a detailed account:
Background of the case: The ASIC first initiated legal action against Block Earner in November 2022. The fintech firm offered a crypto – linked fixed – yield earning service from March 17, 2022, until it was shut down on November 16, 2022. The ASIC contended that Block Earner needed a financial services license to provide this yield product.
Lower court rulings: On April 22, 2025, Federal Court justices David O’Callaghan, Wendy Abraham, and Catherine Button ruled that Block Earner’s crypto – linked fixed – yield earning product did not fall under the categories of a financial product, a managed investment scheme, or a derivative as defined by the Corporations Act. In February 2024, an Australian court initially ruled that the fintech firm required a financial services license for its crypto – yield – bearing products. In June 2024, another Federal Court ruling absolved Block Earner of financial penalties as it had “acted honestly” and sought legal advice before launching the products, which the ASIC appealed.
ASIC’s appeal request: On May 21, 2025, the ASIC stated its intention to ask the High Court to clarify the definition of a financial product and the circumstances under which interest – earning products and asset conversions are subject to regulation. The ASIC believes that clarifying this is in the public interest and applicable to all financial products and services, regardless of whether they involve crypto – assets.
Response from Block Earner: A Block Earner spokesperson told Cointelegraph that the matter had escalated to a broader legal question about the definition of a financial product, extending beyond Block Earner and the crypto sector. The spokesperson expressed confidence in the Federal Court’s April ruling, stating that it was a well – reasoned decision that upheld the integrity of their operations, and they would respond to the ASIC’s application through proper legal channels.
In Australia, special leave is required to appeal to the High Court, and it is only granted in cases involving significant legal questions or matters of public interest.
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