Finder Wins Landmark Court Ruling Against ASIC Over Crypto Yield Product

Finder.com has secured a landmark legal victory against the Australian Securities and Investments Commission (ASIC) in a case concerning its crypto yield product, Finder Earn. On July 11, 2025, the Australian Federal Court dismissed ASIC’s appeal, ruling that Finder Earn does not constitute a financial instrument or debenture under Australian law. This decision resolves a three-year legal dispute and affirms Finder’s compliance with financial regulations, marking a pivotal development for the crypto industry in Australia [1][2].

The case centered on ASIC’s claim that Finder Earn operated as an unlicensed investment scheme, violating the Corporations Act. The regulator argued that Finder Earn functioned as a debenture, implying it required licensing as a financial product. However, the court, led by Justices Stewart, Cheeseman, and Meagher, ruled that Finder Earn is a custodial service, not an investment product. Users retain direct ownership of their assets, and the platform does not engage in financial intermediation. The court emphasized that Finder Earn does not operate like a traditional financial product, as it does not involve loan agreements or guaranteed returns [3][4].

Finder’s CEO and Founder, Frank Restuccia, described the ruling as a validation of the company’s commitment to innovation and regulatory compliance. He highlighted Finder Earn as a tool for Australians to earn yield on their crypto holdings, stressing that the company has consistently adhered to ASIC’s guidelines. Executive Chair Fred Schebesta noted that the case underscores the pace of innovation in the crypto space often outstrips regulatory frameworks. He hopes the decision will encourage collaboration between regulators and startups to foster a balanced regulatory environment as the industry evolves [5].

The ruling carries broader implications for Australia’s crypto sector. While Finder Earn was discontinued in November 2022 with all customer funds returned, the case set a precedent for classifying crypto yield products. The court’s distinction between custodial services and financial products could influence how regulators approach staking, lending, and other crypto services. Analysts suggest this framework may reshape compliance strategies for firms operating in the space [6].

The decision also reflects growing recognition of crypto’s role in modern finance, provided it operates within transparent frameworks. ASIC’s initial enforcement action had raised concerns about regulatory overreach, but the court’s dismissal of its appeal signals a potential shift toward more nuanced oversight. The regulator continues to pursue other crypto-related cases, such as its ongoing action against Blockchain Global, indicating sustained scrutiny of the sector [7].

Finder’s victory positions it as a leader in bridging traditional finance and blockchain technology. However, the company acknowledges ongoing regulatory challenges globally as jurisdictions refine digital asset classifications. The ruling reinforces the need for updated regulations in Australia, particularly as the government works on licensing requirements and asset security standards for crypto firms.

Sources:

[1] Cointelegraph, [https://cointelegraph.com/news/finder-wins-asic-crypto-yield-case]

[2] CoinCentral, [https://coincentral.com/finder-defeats-asic-in-court-over-legality-of-crypto-yield-product/]

[3] Coinspeaker, [https://www.coinspeaker.com/finder-crypto-yield-legal-victory-australia/]

[4] The Cryptotimes, [https://www.cryptotimes.io/2025/07/24/australian-court-rules-in-favor-of-finder-com-over-its-earn-product/]

[5] FX News Group, [https://fxnewsgroup.com/forex-news/cryptocurrency/court-dismisses-asics-appeal-against-finder-wallet-decision/]

[6] Bitcoin Insider, [https://www.bitcoininsider.org/article/280205/finder-earn-wins-legal-battle-over-crypto-australia]

[7] ASIC Newsroom, [https://www.asic.gov.au/newsroom/search/]