Australian Court Dismisses Allegations Against Block Earner’s DeFi “Access” Service

cryptonews.com:

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It is worth noting that Block Earner, with support from prominent crypto exchange Coinbase, had voluntarily withdrawn its fixed-yield “Earner” service during the same month.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 and