Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has applied for special leave to appeal to the High Court of Australia following a Full Federal Court decision that favored fintech firm Block Earner.
The case centers on Block Earner’s “Earner” product, a fixed-yield crypto investment offering that ASIC contends operates as an unlicensed financial product.
ASIC says it is asking the High Court of Australia to clarify what falls within the definition of a financial product to shed light on digital assets and interest-earning options.
In its statement, the regulator emphasized that the definition of a financial product was designed to be broad and technology-neutral. ASIC believes that interpreting this definition should be guided by the public interest.
The ruling may change how crypto and other digital financial services are subject to Australian law. ASIC insists there is a problem with crypto and regulatory predictability for the broader financial sector.
Block Earner defends its product and integrity
Block Earner has welcomed the Federal Court’s decision. On April 22, Federal Court Justices David O’Callaghan, Wendy Abraham, and Catherine Button found that Block Earner’s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme, or a derivative under the Corporations Act.
A spokesperson for the Block Earner said it still had confidence that the clear and robust judgment delivered by the Full Federal Court in April had been based on the facts and law of the matter and had shown that its operations were sound. They also said they remain convinced that the ruling was correct.
“We believe the Full Federal Court’s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,” the spokesperson said. “We remain confident in the soundness of that judgment and will respond to ASIC’s application through the appropriate legal channels.”
The spokesman said the current dispute revolves around a broader legal question: what defines a financial product in the digital age? They emphasized that this issue goes far beyond Block Earner or the crypto sector alone. They noted that one key implication concerns not just this case but the future of fintech innovation and regulatory compliance across Australia.
The company said that despite the legal win, Block Earner has no plans to revive the “Earner” product. Block Earner has pivoted to other similar crypto-backed loan offerings while complying with regulatory requirements.
ASIC and Block Earner battle in years-long legal duel
ASIC has been battling with Block Earner for over two years. The matter commenced in November 2022 in response to ASIC’s proceedings claiming that Block Earner was issuing financial products without holding an Australian Financial Services Licence (AFSL).
The product, Earner, allowed users to deposit crypto-assets like Bitcoin and earn a fixed rate of return. ASIC argued that this constituted a financial product under the law.
In February 2024, the Federal Court agreed with the ASIC argument that Block Earner did require a license. But the court cut it a break in June 2024, opting not to levy any punishment, after determining that Block Earner had acted in good faith, sought legal counsel, and believed it was following the law.
Block Earner challenged the license denial in July 2024, resulting in the April 2025 decision in its favor.
Now, ASIC is seeking to overturn that outcome in the High Court. Proceeding requires leave of the High Court, which is granted only where a case raises substantial legal or constitutional issues.
