Australia’s corporate watchdog isn’t backing down in its battle over crypto regulation. The Australian Securities and Investments Commission (ASIC) now aims for the country’s top court. It wants the High Court’s permission to challenge a ruling that favored fintech company Block Earner.
The regulator sought special leave. It would like the High Court to review a finding by the Full Federal Court. That finding declared Block Earner’s fixed-yield cryptocurrency product not a financial product. ASIC has a different view. It thinks the product meets the definition and must be regulated under the financial services law.
Block Earner allowed customers to earn regular returns from lending out particular cryptocurrency assets. That prompted a court battle. ASIC maintained that the firm provided financial services without a license.
The crypto case seeks clarity
A lower court concurred but reduced the penalty. Block Earner objected and appealed. In April 2025, the Full Federal Court ruled in the company’s favor. ASIC now demands clarity.
It states the legislation has been crafted so comprehensively as to embrace all technologies. Whether traditional money or cryptocurrency, the regulations must apply according to ASIC. The regulator insists the High Court must determine when interest-bearing and asset-transformation products would be subject to financial legislation.
That’s not only about cryptocurrency. It has ramifications for the entire financial system. Block Earner conducts business under Web3 Ventures Pty Ltd. It’s also AUSTRAC-registered and operates as a digital currency exchange operator. The case centers on its “Earner” offering.
The crypto fight continues
Between March and November 2022, the firm sold this product illegally without a license. The court went back and forth on this matter. First off, the Federal Court found Block Earner violated the law. Later on, it eliminated any monetary sanction.
Both parties then brought their appeals. The Full Federal Court heard them in March 2025 and favored Block Earner in April. Now ASIC would like to see the fight persist. A High Court hearing would settle the matter once and for all.
If the court does agree to hear the case, the decision would potentially remake the boundaries of cryptocurrency regulation in Australia. The High Court has not scheduled a date yet. Nevertheless, the regulator’s action indicates one thing. It’s not relinquishing the fight over what constitutes a financial product in the digital era.
