Crypto Wins! Australian Court Backs Block Earner in Case Against ASIC

The crypto industry has triumphed as an Australian court ruled in favor of Block Earner in its lawsuit against the Australian Securities and Investments Commission (ASIC).

Block Earner is an Australian financial company that employs blockchain technology in its products. It allows users to buy, sell, and take crypto loans denominated in Australian dollars. According to its website, it features over 350 cryptocurrencies.

Block Earner vs. ASIC

Block Earner’s regulatory woes began in February 2024, when the Australian financial regulator accused it of providing unlicensed financial services from March to November 2022. At the time, the products in question were its Earner product, which gave fixed crypto returns, and its DeFi “Access” service, which allows integration with decentralized services. The presiding judge at the time, Ian McNeil Jackman, sibling of popular actor Hugh Jackman, dismissed the DeFi Access case, but insisted that the Earner service was illegal.

In the latest hearing, the court agreed that Block Earner broke the law by not having the appropriate license. However, it found that the company acted honestly and made efforts to comply with regulations. Block Earner consulted lawyers before launching the product and tried to follow the rules. The court noted that no customers lost money from the product.

Because of this, the court decided not to fine Block Earner, allowing the company to continue operating without penalty. ASIC has been ordered by the court to cover the legal fees, including appeals.

Australia’s Growing Focus on Crypto Regulation

The latest ruling is a nod towards Australia’s growing interest in crypto, which has become more pronounced in recent times. In September 2024, the government began considering new rules that would require cryptocurrency exchanges to get financial services licenses to keep operating. These rules aim to protect consumers and ensure fairness in the crypto market.

Last month, the Australian government revealed plans to test tokenized money, a new type of digital currency, to explore how crypto and traditional money can work together.