High Court Ruling Puts Squeeze on Block Earner's Crypto Plans

Australia's High Court has dealt a blow to Block Earner, overturning its appeal in a licensing dispute with ASIC. In a unanimous decision, the court ruled that Block Earner's former fixed-yield crypto product required a financial services license under existing law.

The ruling sends the case back to the Full Federal Court to consider penalties. The decision comes after a lengthy legal battle, which began in November 2022 when ASIC launched civil penalty proceedings against Block Earner over concerns that its Earner product had been offered without the required license.

According to court records, Block Earner's product functioned as a facility for financial investment and met the legal definition of a derivative. Investor returns depended on movements in underlying digital asset values and exchange rates.