High Court puts ASIC’s crypto argument to the test
The first crypto case to reach the High Court may turn on two “simple” arguments — and whether ASIC’s logic stretches far beyond digital assets.
For the Australian Securities and Investments Commission (ASIC), the first crypto case in the High Court turns on a “simple” argument — if a scheme offers a return on an investment, it is a financial product under the Corporations Act.
The problem for the regulator is that, during the 12 March hearing, the justices saw where that argument could lead. Even ordinary bank accounts would be caught.
ASIC is seeking to overturn a 3–0 Full Federal Court ruling that fintech company Block Earner did not need an Australian Financial Services Licence (AFSL) to offer its fixed-yield product, Earner.
That court overturned an earlier decision in ASIC’s favour at trial, finding that Block Earner’s product was not a financial product, derivative or managed investment scheme. It noted there had been no customer harm.
