{"id":129750,"date":"2025-05-22T01:17:51","date_gmt":"2025-05-22T01:17:51","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129750"},"modified":"2025-05-22T01:17:51","modified_gmt":"2025-05-22T01:17:51","slug":"australian-regulator-asks-high-court-to-allow-appeal-in-block-earner-case","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129750","title":{"rendered":"Australian regulator asks High Court to allow appeal in Block Earner case"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsAustralia\u2019s financial regulator will seek the High Court\u2019s permission to appeal a lower court\u2019s ruling favoring fintech firm Block Earner, which found the company\u2019s crypto-linked fixed-yield earning service is not a financial product.<br \/>\nThe Australian Securities and Investment Commission (ASIC) said on May 21 that it wants to ask the High Court of Australia to clarify what the definition of a financial product is and clarify the circumstances when an interest-earning product and conversion of assets from one form to another are regulated.<br \/>\n\u201cThe definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,\u201d the watchdog said.<br \/>\n\u201cThis clarification is important as it applies to all financial products and services whether they involve crypto-assets or not.\u201d<br \/>\nOn April 22, Federal Court Justices David O\u2019Callaghan, Wendy Abraham and Catherine Button found that Block Earner\u2019s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme or a derivative under the Corporations Act.<br \/>\nASIC said the court will consider its application. Special leave is required in an appeal to the High Court, and it\u2019s only granted in cases where it would answer significant legal questions or matters of public interest.<br \/>\nA Block Earner spokesperson told Cointelegraph the matter has now escalated to a \u201cbroader legal question\u201d around the definition of a financial product, which extends \u201cwell beyond Block Earner, and the crypto sector.\u201d\u00a0<br \/>\n\u201cWe believe the Full Federal Court\u2019s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,\u201d the spokesperson said. \u201cWe remain confident in the soundness of that judgment and will respond to ASIC\u2019s application through the appropriate legal channels.\u201d\u00a0<br \/>\nLegal saga ongoing since 2022<br \/>\nASIC first launched legal proceedings against Block Earner in November 2022, arguing the company needed a financial services license to offer its yield product which was available from March 17, 2022, until the company shut it down on Nov. 16, 2022.<br \/>\nRelated: Australia outlines crypto regulation plan, promises action on debanking<br \/>\nASIC was arguing Block Earner needed a financial services license to offer its crypto-linked fixed-yield earning product. Source: ASICIn February 2024, an Australian court initially ruled the fintech firm would need a financial services license to operate its crypto yield-bearing products.\u00a0<br \/>\nAnother June 2024 ruling in Australia\u2019s Federal Court released Block Earner from any financial penalties because it had \u201cacted honestly\u201d and pursued its legal opinions before launching the products, which ASIC appealed.<br \/>\nBlock Earner appealed the Federal Court\u2019s decision that it needed a financial services license on July 9, 2024.\u00a0<br \/>\nMagazine: SEC\u2019s U-turn on crypto leaves key questions unanswered<a href=\"https:\/\/cointelegraph.com\/news\/australian-regulator-asks-high-court-allow-appeal-block-earner?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsAustralia\u2019s financial regulator will seek the High Court\u2019s permission to appeal a lower court\u2019s ruling favoring fintech firm Block Earner, which found the company\u2019s crypto-linked fixed-yield earning service&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129750"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129750"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129750\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129750"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}