The High Court of Australia has granted the Australian
Securities and Investments Commission special leave to appeal a ruling in
favour of digital asset provider Block Earner. The case concerns whether the
company’s fixed-yield product, Earner, qualifies as a financial product under
Australian law.
Australia’s Full
Federal Court previously ruled that Block Earner did not need a financial
services licence for the product, overturning an earlier Federal Court
decision. ASIC’s claims, including those related to a variable-yield product,
were dismissed following the company’s appeal.
Background on Block Earner
Block Earner, operating as Web3 Ventures, offered Earner for
a period in 2022, letting investors earn fixed returns on digital assets. ASIC
launched proceedings, alleging the company provided unlicensed financial
services and ran an unregistered investment scheme.
You may find it interesting at FinanceMagnates.com: Societe
Generale’s Aussie Unit Pays Massive Fine After Missing Suspicious Futures
Trades.
In early 2024, the Federal Court found Block Earner had
engaged in unlicensed conduct but later relieved the company from paying
penalties. The company cross-appealed to challenge the licence requirement.
The High Court granted special leave, on the condition that
ASIC cover Block Earner’s legal costs. The regulator must lodge its notice of
appeal within two weeks. A hearing date has not yet been set.
Regulator Consolidates Guidance and Legal Instruments
ASIC has cut more than 9,240 pages of regulatory content
this year as part of efforts to simplify compliance. The
agency consolidated legal instruments, reduced duplicated guidance, and
launched digital services to replace paper-based processes.
ASIC is testing ways to reduce obligations for
small-company directors and financial advisers, including accepting electronic
signatures and email submissions for certain filings.
The simplification aims to reduce costs, clarify rules, and
improve enforcement. ASIC oversees 3.6 million companies, 15,500 financial
advisers, and thousands of other entities, and its reforms target clearer, more
accessible regulation for businesses and consumers.
This article was written by Tareq Sikder at www.financemagnates.com.
Source link
