The Australian Federal Court has found fintech company Block Earner engaged in unlicensed financial services conduct when offering its crypto-backed Earner product.
From March 2022 to November 2022, Block Earner offered consumers the Earner product which allowed them to earn fixed yield returns from different crypto-assets.
In one of the first decisions on the application of the financial services law to crypto-backed products, today the Court found that Block Earner provided unlicenced financial services and operated an unregistered managed investment scheme when offering Earner. This is because the Earner product met the definition of a managed investment scheme and a facility for making a financial investment under the law.
The Australian Securities and Investments Commission (ASIC), however, was unsuccessful in its allegation that…
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