EddieJayonCrypto
21 May 25
Australia’s corporate regulator, ASIC, is seeking special leave from the High Court to appeal a ruling favoring crypto firm Block Earner in a dispute over the classification of digital asset yield products under the Corporations Act. ASIC wants clarification on how interest-earning and asset convers...
Australia's corporate regulator ASIC is seeking special leave from the High Court to appeal a ruling in favor of crypto firm Block Earner, aiming to clarify the legal status of digital asset yield products under the Corporations Act.ASIC wants to define how interest-earning and asset conversion products should be regulated as financial products. This appeal follows a Full Federal Court decision that overturned earlier findings against Block Earner, which had offered a fixed-yield crypto product called "Earner" without a financial services license.The Full Federal Court ruled that the product did not qualify as a financial product under current law, limiting ASIC's regulatory control over crypto services. Block Earner has stopped offering the product and denies wrongdoing, stating the product involved fixed-term crypto loans without pooling funds or business risk.ASIC stresses that the definition of a financial product was drafted in a broad, technology-neutral way and believes this clarification is important as it applies to all financial products and services, whether crypto-related or not.The High Court has not yet scheduled a hearing for ASIC's application, and special leave is required, granted only for cases involving significant legal questions or public interest.Block Earner's CEO, Charlie Karaboga, noted that the matter relates to a broader legal question beyond just their firm or the crypto sector. The April 2025 Full Federal Court ruling was seen as a strong decision upholding the integrity of Block Earner's operations.The original dispute began following a February 2024 Federal Court ruling that found Block Earner had engaged in unlicensed conduct offering the Earner product between March and November 2022. However, ASIC's claims against Block Earner’s variable-yield product "Access" were dismissed and penalties relieved in June 2024.The subsequent appeals led to the Full Federal Court's April 2025 ruling. Block Earner, operating as Web3 Ventures Pty Ltd, has since ceased offering Earner and has no plans to relaunch it.The company maintains that its product allowed customers to loan crypto on fixed terms to earn interest without exposing them to business risk.Block Earner continues to operate normally, focusing on compliance, innovation, and delivering products that benefit Australian consumers while awaiting the High Court's decision.