The regulatory cases testing the limits of Australia's crypto laws
A string of crypto-linked enforcement cases in Australia are testing the boundaries of financial product definitions and the ability of existing laws to govern digital assets.
February has been a key month for crypto enforcement in Australia. In the last two weeks, crypto startup Block Earner was found to be in breach of the Australian Corporations Act and Kraken operator Bit Trade saw its legal battle with the securities regulator scheduled for a liability hearing in July.
The two lawsuits are one half of a series of cases brought by the Australian Securities and Investments Commission in late 2022, which focus on whether crypto products are financial products and should be regulated as such.
The cases, which also include action against BPS Financial and its crypto asset Qoin, and Finder Earn's Finder Wallet, cover allegations from misleading consumers to alleged unlicensed conduct.
Lawyers who spoke with Capital Brief say litigation in the digital industry is simply the next set of low-hanging enforcement fruit for the regulator in the financial system, after the big banks were forced to get their houses in order following the Royal Commission.
