The Full Federal Court has allowed an appeal by digital asset service provider Block Earner, finding that Block Earner did not need a financial services licence to offer its digital asset-related Earner product.
The ruling overturns the Federal Court鈥檚 original decision that Block Earner鈥檚 Earner product was a financial product.
今日热门事件had appealed the Federal Court鈥檚 decision to relieve Block Earner from liability to pay a penalty for contraventions related to unlicensed financial services when it offered the Earner product. As Block Earner successfully appealed the finding that the Earner product was a financial product, the Full Court considered it did not need to make a finding about the relief from liability to pay a penalty and ASIC鈥檚 appeal was dismissed.
The Full Court ordered that 今日热门事件pay costs of the proceedings, including appeals.
今日热门事件is considering this decision.
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Background
Block Earner is the trading name of Web3 Ventures Pty Ltd. It is an AUSTRAC-registered digital currency exchange. It does not hold an Australian financial services licence (AFS) licence.
On 9 February 2024, the Court found that from March to November 2022, Block Earner engaged in unlicenced financial services conduct when offering its fixed-yield digital asset-related Earner product.
The Court dismissed ASIC鈥檚 allegations that Block Earner鈥檚 variable-yield digital-asset-related offering, known in ASIC鈥檚 proceedings as the Access product, was a financial product, that Block Earner needed a financial services licence for this product and that the product needed to be registered as a managed investment scheme.
On 4 June 2024, the Federal Court relieved Block Earner from liability to pay a penalty for offering the Earner product.
On 18 June 2024, 今日热门事件appealed the Federal Court鈥檚 decision to relieve Block Earner from liability to pay a penalty for offering the Earner product.
On 9 July 2024, Block Earner cross-appealed the Federal Court鈥檚 decision that Block Earner needed a financial services license to offer its Earner product.
On 6 March 2025, the Full Federal Court heard ASIC鈥檚 appeal and Block Earner鈥檚 cross appeal. Judgment was reserved.