The post Australian court rules in favor of crypto lender, dismissing ASIC’s appeal appeared on BitcoinEthereumNews.com.

The Australian Full Federal Court dismissed an appeal from the Australian Securities and Investments Commission (ASIC), which failed in its attempt to punish Block Earner for its previously offered “Earner” product, marking one of the biggest pro-crypto wins in recent times. ASIC argued that the features of the Earner product made it a financial product under Australian law that required a license. However, the Court found the product could not meet the legal definitions required to deem it as such. ASIC said in a brief public note it is “considering this decision.” The regulator has yet to venture the matter by the High Court. The ruling is a setback for ASIC, which has ramped up its oversight of cryptocurrency products and platforms in Australia. Court declares Block Earner offered loans, not investments ASIC commenced proceedings against Block Earner on the first of November 2022 — the start of the legal saga. Central to the case was whether the Earner product operated as a conventional investment scheme — which would need to be tightly regulated — or whether it was just a loan agreement between Block Earner and its customers. The Court reasoned that the product was structured as a plain loan. Customers signed agreements to lend their crypto assets to Block Earner for a fixed return. Crucially, there was no pooling of customer assets. The agreement for each customer was separate. Customers also had no interest in Block Earner’s broader business operations or performance aside from earning the agreed interest. The court also held that the structure was not a managed investment scheme. The ruling stated that the product details were clear and that the customers’ rights were fixed and contractual, not dependent on the performance of a pooled investment. This distinction was central to exonerating Block Earner of any…

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Filed under: News - @ April 23, 2025 12:25 am