ASIC Seeks High Court Review of Block Earner Ruling on Crypto Products

Australia’s financial regulator, the Australian Securities and Investment Commission (ASIC), has taken a significant step in its ongoing legal battle with fintech firm Block Earner. ASIC has filed a request with the High Court seeking special leave to appeal the Full Federal Court’s April 2025 decision in favor of Block Earner. This move is aimed at clarifying the legal definition of financial products under Australian law, particularly in cases involving interest-yielding and asset-conversion products.

The dispute centers around Block Earner’s “Earner” product, which allowed consumers to earn fixed returns by lending crypto-assets. Initially, the Federal Court ruled in February 2024 that the offering constituted unlicensed financial services activity. However, the court later declined to impose a penalty. In June 2024, ASIC appealed this decision, while Block Earner filed a cross-appeal challenging the finding that its product required a financial services license.

On April 22, 2025, the Full Federal Court ruled in favor of Block Earner, allowing the firm’s cross-appeal and dismissing ASIC’s case. ASIC is now seeking a review by the High Court to provide definitive guidance on the legal classification of financial products. The regulator argues that the issue is of public interest and that the financial product definition under the Corporations Act is intentionally broad and technology-neutral. ASIC emphasizes the need for clarity in how these definitions apply to emerging business models, including those using crypto-assets, as well as traditional finance products.

“Clarification is important as it applies to all financial products and services whether they involve crypto-assets or not,” ASIC stated. 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 garnered significant 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.