ASIC Seeks High Court Appeal in Landmark Crypto Yield Product Case

Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), is seeking special leave from the High Court to appeal a Federal Court ruling in favor of crypto firm Block Earner. The case centers on whether fixed-yield crypto offerings like Block Earner’s discontinued "Earner" product should be classified as regulated financial products under the Corporations Act.

The Full Federal Court ruled in April that Block Earner’s product did not require an Australian Financial Services Licence (AFSL), reversing a 2024 ruling that had found the company operated without proper authorization between March and November 2022. The Court also dismissed ASIC’s claims against Block Earner’s variable-yield product, “Access,” and waived penalties in June 2024.

ASIC argues the legal interpretation of what constitutes a financial product needs clarification, especially as it applies to both crypto and traditional financial services. "The definition of financial product was drafted in a broad and technology-neutral way," ASIC stated, emphasizing the broader implications for the financial industry.

Block Earner, operated by Web3 Ventures Pty Ltd, has shut down the product and confirmed it has no intention of relaunching it. CEO Charlie Karaboga said the ruling affirmed the company’s operations, adding they remain confident in the judgment and committed to compliance.

The High Court must now decide whether to hear the appeal, as special leave is granted only in matters of significant legal or public interest.

The dispute comes amid Australia’s broader push to regulate digital assets. Under new government reforms, major crypto platforms will soon need an AFSL, signaling a tighter regulatory approach.

Block Earner continues to operate, maintaining its focus on innovation and legal compliance while awaiting the next steps in this pivotal legal battle.