The Australian Securities and Investments Commission (ASIC) has filed a request in the High Court to appeal a Federal Court ruling regarding Block Earner and the status of its financial products.
ASIC's Appeal to the High Court
On May 21, ASIC sought special leave from the High Court of Australia to appeal the ruling made by the Full Federal Court that deemed Block Earner's fixed-yield crypto product not a financial product under the Corporations Act 2001. ASIC aims to clarify how yield-earning products and those involving asset conversion are regulated.
Block Earner's Position
CEO and co-founder of Block Earner, Charlie Karaboga, acknowledged ASIC's application to the High Court, noting that the matter relates to a broader legal question around the definition of a financial product. He expressed confidence in the Federal Court's decision and emphasized that Block Earner continues to operate normally while adhering to compliance.
Federal Court's Decision
On April 22, the Full Federal Court of Australia overturned previous findings against Block Earner, confirming that the 'Earner' product does not constitute a financial product under existing law. The court also dismissed ASIC's claims regarding the unlicensed nature of Block Earner's services and ruled against ASIC's allegations about another offering, 'Access'.
The Block Earner team remains confident in the legitimacy of its business operations while ASIC seeks clarification on the regulation of emerging financial technologies.
