High Court Grants ASIC Leave to Appeal Block Earner Crypto Product Ruling

The High Court of Australia has permitted the Australian Securities and Investments Commission (ASIC) to challenge a ruling favoring Block Earner, a digital asset provider. The case centers on whether Block Earner's fixed-yield product, Earner, constitutes a financial product under Australian law. Earlier, the Full Federal Court had ruled that the company did not require a financial services license for the product, overturning a prior Federal Court decision.

Block Earner, operating as Web3 Ventures, offered the Earner product in 2022, allowing investors to earn fixed returns on digital assets. ASIC alleges the company provided unlicensed financial services and operated an unregistered investment scheme. While the Federal Court initially found Block Earner engaged in unlicensed conduct, it later waived penalties. The High Court's grant of special leave comes with the condition that ASIC covers Block Earner's legal costs.