Australia’s corporate regulator has secured permission to take its dispute with digital asset platform Block Earner to the nation’s highest court, with the High Court granting ASIC special leave to appeal a Full Federal Court ruling that found the company did not need a financial services licence to offer a fixed‑yield crypto product.
ASIC will use the appeal to seek clarity on the scope of the term “financial product” and when interest‑earning offerings and products involving the conversion of assets from one form to another are captured by the financial services regime. The regulator says the definition was drafted to be broad and technology‑neutral and argues clarification is in the public interest across both digital and traditional finance.
The grant of special leave is conditional on ASIC agreeing to pay Block Earner’s costs of the appeal. ASIC has 14 days to file a notice of appeal. A hearing date will be set by the High Court.
Block Earner, the trading name of Web3 Ventures Pty Ltd, is an AUSTRAC‑registered digital currency exchange. AUSTRAC registration is distinct from holding an Australian Financial Services licence.
The case stems from Block Earner’s “Earner” product, offered between March and November 2022, which provided investors with fixed‑yield returns from different digital assets. ASIC began civil penalty proceedings in November 2023 alleging the company provided unlicensed financial services and operated an unregistered managed investment scheme.
In February 2024, the Federal Court found Block Earner had engaged in unlicensed conduct when offering the Earner product. The court subsequently relieved the company from liability to pay a penalty in June 2024, prompting ASIC to appeal; Block Earner cross‑appealed on liability.
The Full Federal Court heard both matters in March 2025 and, on 22 April 2025, allowed Block Earner’s cross‑appeal while dismissing ASIC’s appeal, concluding the company did not engage in unlicensed conduct.
