Block Earner says ASIC appeal is opportunity to contribute to regulatory landscape
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More news: Block Earner has described the Australian Securities and Investments Commission’s (ASIC's) appeal of a full Federal Court decision that the crypto exchange operator did not require a financial services licence to offer its fixed-yield digital asset-related product as a chance to contribute to Australia’s evolving digital assets regulatory landscape.
The full Federal Court upheld a ruling that Block Earner’s Earner product was not a financial product in April. Block Earner does not expect the matter to be heard until February 2026 based on the Court’s timetable.
What they said: Block Earner CEO and co-founder Charlie Karaboga welcomed the High Court’s decision to grant the corporate regulator special leave to appeal, through which it is seeking rulings on the definition of ‘financial product’ and ‘derivative’.
“Clear regulations matter, and we hope this approach helps ensure important legal questions can be tested without placing disproportionate burdens on private companies,” Karaboga said, noting that the appeal is conditional on ASIC paying Block Earner’s legal costs.
He also noted that “constructive engagement between regulators, innovators and the courts is essential to providing clear rules in a fast-changing environment”.
ASIC's appeal of Block Earner decision to be heard in High Court
The news: The Australian Securities and Investments Commission’s (ASIC's) appeal of a full Federal Court decision that Block Earner did not need a financial services licence to offer a fixed-yield digital asset-related product will be heard in the High Court.
The context: ASIC sought special leave from the High Court to appeal the full Federal Court decision it made in May 2025. The corporate regulator must now file a notice of appeal within 14 days, with the special leave conditional on ASIC agreeing to pay Block Earner’s costs of the appeal.
ASIC is seeking a ruling on the definition of a financial product. It flagged that the definition is drafted in a “broad and technology-neutral way” and there is a public interest in clarification.
Between March and November 2022, Block Earner offered its Earner product which allowed consumers to earn fixed yield returns from lending specified crypto-assets.
The Federal Court ruled in June 2024 that Block Earner’s now-closed Earner product was not a financial product so could be issued without a Block Earner needing a financial services licence.
The full Federal Court heard ASIC’s appeal and Block Earner’s cross-appeal on 6 March 2025, but eventually ruled in favour of the Coinbase-backed startup on 22 April.
The sources: ASIC media release, Block Earner media release
