An Australian court has dismissed allegations relating to Block Earner’s DeFi “Access” service in a legal case brought by the Australian Securities and Investments Commission (ASIC).
Justice Ian McNeil Jackman, who presided over the case, has delivered a split decision regarding the case.
Despite dismissing allegations relating to the company’s DeFi “Access” service, it ruled that Block Earner had engaged in unlicensed financial services with its crypto-backed Earner product.
ASIC sued Block Earner in November 2022, accusing the company of providing unlicensed fixed-yield earning products based on crypto assets.
It is worth noting that Block Earner, with support from prominent crypto exchange Coinbase, had voluntarily withdrawn its fixed-yield “Earner” service during the same month.
BREAKING: Block Earner, an Australian fintech #crypto company, has been found to have engaged in unlicensed financial services activities.
Importantly, Block Earner had argued that it had considered itself a “digital currency exchange”, so thought it only had to meet the… pic.twitter.com/JSNrWIBCPO
— Inoke Faletau (@InokeFaletau) February 9, 2024
ASIC’s Deputy Chair Sarah Court noted the importance of the court’s decision, stating that it provides clarity on when crypto-backed products should be considered financial products requiring licensing under the law.
“This important decision provides some clarity as to when crypto-backed products should be considered financial products which require licensing under the law,” she said in a comment.
“Firms offering products with crypto-assets must carefully consider whether their offerings are financial products under the existing regime. And, if they are, ensure that they are appropriately licenced andRead more on cryptonews.com