The legal fight between Block Earner and the Australian Securities and Investments Commission (ASIC) is heating up—and it could shape the future of crypto regulation in Australia.
On May 21, ASIC announced plans to take its case to the High Court of Australia. The reason? A push to redefine what counts as a “financial product” under the law. This case could set a major precedent not just for Block Earner, but for all crypto firms in the country.
What’s the Case About?
Block Earner is a fintech company that once offered a crypto-linked fixed-yield earning product—a way for users to earn interest on digital assets. ASIC believes such a product should be regulated like any other financial service.
However, in April 2024, three Federal Court judges ruled otherwise. They decided that Block Earner’s yield product wasn’t a financial product, wasn’t a managed investment scheme, and wasn’t a derivative under current Australian law.
That ruling was a big win for Block Earner—and for the broader crypto industry. But now, ASIC wants the High Court to review it.
Why This Matters
ASIC says the legal definition of financial products was written to be broad and neutral to technology. Now, they’re asking the High Court to clarify it—especially for new products like those tied to crypto.
“The outcome of this case could affect all financial products and services, not just crypto,” ASIC said.
A spokesperson for Block Earner agrees the case has grown beyond the company itself. “This is now a broader legal question,” they told Cointelegraph. “We remain confident in the court’s previous decision and will respond through the appropriate legal channels.”
A Long Legal Journey
ASIC first took action against Block Earner in November 2022, saying it needed a financial services license to operate its crypto yield products.
In February 2024, a court sided with ASIC, but in June, another ruling cleared Block Earner of financial penalties, noting the company had acted honestly and consulted legal experts before launching the service.
Block Earner then appealed, and now ASIC is doing the same—this time to the highest court in Australia.
What’s Next?
The High Court must now decide whether to grant special leave to appeal. This is only done in cases that raise major public interest or difficult legal questions.
If accepted, the case could shape how crypto products are defined and regulated—not just in Australia, but potentially in other markets watching closely.
For crypto investors, developers, and entrepreneurs, this is a moment to watch. The result may change how crypto finance operates down under.
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