ASIC alleged that Block Earner’s variable-yield digital asset-related offering, called the Access product, was a financial product and that Block Earner thus needed to obtain an AFSL and register the product as a managed investment scheme. The Federal Court disagreed with these allegations of ASIC.
On 4 June 2024, the Federal Court relieved Block Earner from its liability to pay a penalty for contraventions involving unlicensed financial services, incurred when it offered the Earner product. On 18 June 2024, ASIC appealed this decision to relieve Block Earner from liability.
On 9 July 2024, Block Earner cross-appealed the Federal Court’s finding that it needed a financial services license to offer its Earner product on the basis that it was a financial product.
On 6 March 2025, the Full Court of the Federal Court heard ASIC’s appeal and Block Earner’s cross-appeal and decided to reserve judgment.
Block Earner’s appeal granted
The Full Court of the Federal Court overturned the Federal Court’s original decision. The Full Court allowed Block Earner’s appeal, dismissed ASIC’s appeal, and ordered ASIC to pay the costs of the proceedings, including the appeals.