TechFlow News, June 17: According to The Block, Australia’s High Court unanimously ruled that Block Earner’s previously launched fixed-income digital asset product, Earner, constitutes a regulated financial product under Australian law, and offering such a product requires holding an Australian Financial Services Licence (AFSL). The Court upheld the appeal filed by the Australian Securities and Investments Commission (ASIC) and overturned the earlier, more favorable ruling for Block Earner issued by a lower court.
The case will now be remitted to the Federal Court for further proceedings regarding penalties. ASIC stated that this judgment reaffirms that the existing definition of “financial products” is broad and technology-neutral—meaning novel products such as digital assets fall within its scope without requiring legislative amendments.
Currently, Block Earner voluntarily discontinued the Earner yield product in November 2022 and has since shifted its business focus toward other initiatives, including developing crypto-asset-backed home loan products.
