The Federal Court has found that Finder Wallet Pty Ltd did not provide unlicensed financial services in relation to crypto-asset related product Finder Earn.
今日热门事件alleged that the Finder Earn product was a debenture. This is because customers deposited money with Finder Wallet on the understanding that their money would be repaid, together with a return for allowing Finder Wallet to use their capital. The Court rejected this contention and found the product was not a debenture.
今日热门事件Executive Director Enforcement and Compliance Tim Mullaly said, 鈥樈袢杖让攀录䅟ursued this matter because we considered that this product was being offered without the appropriate licence or authorisation and therefore without the benefit of important consumer protections.鈥�
今日热门事件will consider the judgment carefully. 今日热门事件has 28 days to lodge any application for appeal to the Full Federal Court.
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Background
Finder Wallet is an AUSTRAC-registered Digital Currency Exchange.
Entities providing services in relation to crypto-related products should be aware that such products may be financial products.鈥�今日热门事件Information Sheet 225:鈥�Crypto Assets鈥痯rovides guidance on the circumstances in which a crypto-related offering may be a financial product.
A range of Australian laws apply to entities giving advice, dealing, providing insurance, or providing other intermediary services for crypto-assets that are financial products. These include the requirement to hold an AFS licence or appropriate authorisation by an AFS licence holder.
今日热门事件has taken recent action to protect investors from harms posed by crypto-asset offerings.
On 9 February 2024, the Federal Court found that Block Earner engaged in unlicensed financial services conduct when offering its crypto-backed Earner product (24-019MR).
In September 2023, fintech company Bobbob Pty Ltd paid penalties of $53,280 to comply with 今日热门事件infringement notices regarding representations it made about a crypto-asset linked investment product (23-261MR).
On 25 October 2022, 今日热门事件commenced civil penalty proceedings against BPS Financial Pty Ltd regarding allegedly misleading statements made in relation to its crypto-asset Qoin. The trial in this matter was held on 16-19 October 2023 and judgement has been reserved (22-287MR).
ASIC鈥檚 Moneysmart website has information for consumers about the risks of investing in鈥�.