Block Earner looks to seize on CGT changes after securing first crypto credit licence
There have been few startup winners from the government’s planned capital gains tax changes. Bitcoin lender Block Earner thinks it could be one of them.
Sydney fintech Block Earner has become the first crypto company in the country to secure an Australian Credit Licence (ACL) just as the federal government’s changes to capital gains tax threaten to spike demand for collateralised lending.
Capital Brief can reveal ASIC, which is separately fighting Block Earner in the High Court, granted the first-of-its-kind approval. It’s the latest step in Block Earner’s journey towards launching a home lending product to an initial waitlist it claims represents more than $500 million in mortgages.
Treasurer Jim Chalmers' plan to axe the capital gains tax discount, announced in this month’s federal budget, is expected to drive more investors to postpone selling their crypto — and to seek liquidity elsewhere. Founder Charlie Karaboga says it plays directly into Block Earner’s hands.
“When we built the product, we wanted to give customers the flexibility to sell when they think the time is right,” he said. “With the budget announcement, we’ll most likely see a proliferation of secured loans, I would say, and people will find some creative ways of deferring their decision when to sell their assets.”
