The Federal Court of Australia was on the part of FinTech Block Resalue companies in an appeal against a ruling, which showed that it is obliged to conduct a license for financial services for its currently discounted cryptocurrency products.
A product earning at a constant level of performance Block Earner is not a financial product or a managed investment program and is not a derivative under the Corporate Act, judges David O’Callaghan, Wendy Abraham and Catherine Button he said in the judgment on April 22.
The trio said that the Block Earner profitability product cannot be classified as an investment or financial product, because users borrowed crypto under constant interest payment conditions and did not collect contributions to generate further benefits. They added that the conditions developed it as a loan, and users had no exposure to the company’s activities outside the agreed interest rate.
The Australian Commission of Securities and Investment Stock (ASIC), which brought the case for the first time, was ordered by the court to cover the costs for the proceedings, including the appeal. Regulator he said In a press release of April 22 that he is currently “considering this decision.”
The commercial director Block Earner, James Coombes, told CointeLgraph that the court’s decision brings clarity that cryptographic assets should not be treated differently than other asset classes when applying existing regulations.
“Our product was simply defined as such in which customers would lend us their assets for a permanent return, there was no participation in the position of the asset pool and as such there is no managed investment system,” he said.
“The fact that he contained cryptographic resources should not change this simple definition and I think that this matter is the basis for ambitious brands in Australia.”
ASIC spokesman refused to comment further.
The product earning will not come back
Despite winning in court, Block Earner will not revive a product earning a product after court proceedings began, but Coombes said that “loan products supported by cryptographic remain the company’s main goal.”
“The future regulation is not an easy task, and we sympathize with regulatory bodies in this matter,” added Coombes. “We hope that the cooperation process can lead to positive changes.”
Related: Australia presents a cryptocurrency regulation plan, promises to debate activities
Asic launched civil legal proceedings in November 2022, arguing that Block Earner needs a license of Australian financial service to offer three products earning a constant cryptographic level.
In February 2024, the Australian Court initially stated that FinTech would need a license for financial services to support products related to cryptocurrency profity.
Another ruling in June 2024 issued block earnings from all financial penalties, because it “worked honestly” and sought legal opinions before the launch of products that ASIC appealed.
Warehouse: Referring Sec at cryptography leaves key questions unanswered
