The Federal Court of Australia cooperated with the Fintech Firm Block Earner in an appeal against a decision found that it was necessary to conduct a financial service license for crypto -related products related to crypto -related to crypto.
Link the crypto linked to crypto Reaping revenue product is not a financial product, or a managed investment method, and not a welding Says In a judgment on April 22th.
The trio said the block earner’s produce product could not be classified as a financial investment or product because users lent crypto under fixed terms for interest payments and not pool contributions to generate additional benefits. The terms and conditions that have set it up as a loan, and users have no exposure to the company’s business outside of the agreed interest rate, they added.
The Australian Securities and Investment Commission (ASIC), who first brought the case, was ordered by the court to pay costs for the proceedings, including the appeals. The regulator Says In a statement of April 22 this is currently “considering this decision.”
Commercial Block Earner James Coombes official, told Cointelegraph that the court’s decision brings clarity that Crypto assets It should not be treated differently from other classes when applying existing laws.
“Our product is simply defined as the one where customers will lend their property to us for a fixed return, no part in the pool of property pool and as there is no managed investment method that exists,” he said.
“The fact that it includes crypto properties should not change the simple meaning, and I believe that this case generates a bedrock for the ambitious brands around Australia to be built.”
An ASIC spokesman refused further feedback.
Earner’s product will not return
Despite winning the court, the block earner will not revive the product of its profit after it began when legal proceedings began, but Coombes said “Crypto -supported loan products remain the company’s main focus.”
“Regulation forward is not an easy task, and we sympathize with regulators at this point,” Coombes added. “We hope that a collaboration process can cause positive change.”
Related: Australia outlined the crypto regulation plan, promising dedicated action
ASIC has launched the civil Legal proceedings in November 2022.
In February 2024, an Australian The court first found the Fintech firm A financial service license will need to operate crypto -carrying products.
Another decision in June 2024 Released Block Earner from any financial penalties Because it “acted honestly” and pursued its legal opinions before launching the products, which appealed to ASIC.
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