Key Takeaways
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Australia’s High Court delivers unanimous verdict requiring licence for Block Earner’s product
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ASIC secures significant victory in cryptocurrency product regulation battle
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Full Federal Court to reconsider penalty determinations following High Court ruling
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Judges confirm crypto yield offering satisfied financial product criteria
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Company pivots business model to Bitcoin-collateralized mortgage products
In a landmark decision, Australia’s highest judicial authority has sided with the financial regulator in a critical cryptocurrency licensing battle against Block Earner. The court determined that the company’s discontinued fixed-yield digital currency product required proper financial services authorization. The matter of penalties will now be reconsidered by the Full Federal Court.
Supreme judicial body reverses lower court decision
The seven justices delivered a unanimous verdict that overturned a previous Full Federal Court judgment favorable to Block Earner. The company, managed by Web3 Ventures Pty Ltd, previously provided the Earner yield service. ASIC maintained that the offering was subject to established financial product regulations.
The highest court determined that Earner functioned as an investment facility under Australian law. Additionally, judges concluded the product qualified as a derivative instrument. The judgment noted that yields fluctuated based on digital currency valuations and foreign exchange variations.
This determination bolstered ASIC’s argument that Block Earner required proper Australian financial services authorization. The watchdog emphasized that operating without appropriate licensing deprived customers of essential safeguards under financial services legislation. The penalty phase now proceeds to the Full Federal Court for fresh consideration.
Legal proceedings clarify Australian cryptocurrency framework
ASIC initiated civil penalty action against Block Earner during November 2022. The enforcement targeted the Earner service due to the company marketing it without necessary authorization. Block Earner discontinued the offering that same month.
The Federal Court determined in February 2024 that Block Earner operated an unlicensed managed investment structure. Nevertheless, the court subsequently granted the firm relief from monetary sanctions in June 2024. ASIC contested that relief decision, while Block Earner submitted its counter-appeal during July 2024.
The Full Federal Court granted Block Earner’s counter-appeal in April 2025. It simultaneously rejected ASIC’s penalty appeal at that juncture. The High Court has now overturned those findings and reinstated the regulator’s pursuit of penalties.
Company transitions to cryptocurrency-collateralized financing
Block Earner has subsequently pivoted away from fixed-return cryptocurrency offerings. The firm obtained an Australian Credit Licence during May 2026. It subsequently unveiled intentions to launch cryptocurrency-backed mortgage solutions.
The planned service would enable borrowers to pledge Bitcoin as security for residential financing. This structure would permit customers to obtain credit while maintaining their Bitcoin positions. The licensing approval represented a significant milestone for digital asset lending services in Australia.
Nevertheless, the High Court verdict strengthens ASIC’s regulatory authority over cryptocurrency products. The ruling establishes that existing legislation applies to digital asset offerings when they satisfy financial product criteria. Consequently, cryptocurrency businesses confront increased licensing obligations under Australia’s current regulatory structure.
