The Australian Securities and Investments Commission (ASIC) is seeking special leave from the High Court to appeal the Full Federal Court’s April decision in favor of Block Earner, a crypto-asset service provider. The regulator aims to secure a ruling that clarifies what constitutes a financial product under Australian law, particularly in cases involving interest-yielding and asset-conversion products.
The case centers on Block Earner’s “Earner” product, which allowed consumers to earn fixed returns by lending crypto-assets. While the Federal Court initially ruled in February 2024 that the offering constituted unlicensed financial services activity, it later declined to impose a penalty. In June 2024, ASIC appealed that decision, while Block Earner filed a cross-appeal challenging the finding that its product required a financial services license.
“Clarification is important as it applies to all financial products and services whether they involve crypto-assets or not”
On 22 April 2025, the Full Federal Court sided with Block Earner, allowing the firm’s cross-appeal and dismissing ASIC’s case. Now, ASIC is asking the High Court to review the decision to provide definitive guidance on the legal classification of financial products.
ASIC stated that the issue is of public interest and that the financial product definition under the Corporations Act was intentionally broad and technology-neutral. The regulator emphasized the need for clarity in how these definitions apply to emerging business models, including those using crypto-assets, but also extending to traditional finance products.
“Clarification is important as it applies to all financial products and services whether they involve crypto-assets or not,” ASIC said.
The application for special leave will be considered by the High Court at a date yet to be determined.
Block Earner, operating under Web3 Ventures Pty Ltd, is registered with AUSTRAC as a digital currency exchange. The firm also offers another product, Access, which allows users to earn variable yields from digital asset activities. While ASIC had initially alleged that Access was also a financial product, the Federal Court dismissed that claim.
This case has drawn attention within Australia’s fintech and legal communities, as it could set a significant precedent regarding regulatory oversight of yield-bearing and crypto-linked financial offerings. A High Court ruling may impact how future blockchain and decentralized finance products are treated under current financial laws.
