The Australian Securities and Investment Commission (ASIC) is looking for special leave from the High Court to appeal a ruling in favor of Block Earner, boosting the status of virtual asset yield products.  The ASIC is requesting the High Court to shed light on how interest-earning and asset conversion products

• A previous Federal Court ruling in February 2024 declared that Block Earner was involved in unlicensed conduct. 
• Last month, the Full Federal Court gave a decision overturning previous findings against Block Earner.

The Australian Securities and Investment Commission (ASIC) is looking for special leave from the High Court to appeal a ruling in favor of Block Earner, boosting the status of virtual asset yield products. 

The ASIC is requesting the High Court to shed light on how interest-earning and asset conversion products should be treated under the Corporations Act. The agency made a statement in which it mentioned that the definition of a financial product was declared in a wide and technology-neutral way, and the agency believed it to clarify it in the public interest. 

The agency further noted that the clarification is significant as it applies to all financial products and services, whether they involve crypto or not. Also, the ASIC demanded a special leave.

The court gives it only in cases involving important legal questions or matters of public interest. The Chief Executive Officer of Block Earner, Charlie Karaboga, mentioned that:

“We account ASIC’s application to the High Court, and as mentioned in their submission, that this matter is associated with a broader legal question around the definition of a financial product, which extends well beyond Block Earner and the crypto industry.”

Overturning The Decision 

Last month, the Full Federal Court gave a decision overturning previous findings against Block Earner, which ASIC claims had offered a fixed-yield crypto product named “Earner” without a financial services license. 

On this matter, the CEO asserted that the team believed the Full Federal Court’s April ruling was a robust and well-reasoned decision that upheld the integrity of the platform’s functions. Also, the team remains optimistic and will reply to the application of ASIC through the right legal channels. 

A previous Federal Court ruling in February 2024 declared that Block Earner was involved in unlicensed conduct when offering the Earner product between March and November 2022. Further, the court rejected the claims of ASIC against the platform’s variable-yield product, and in June, the firm was relieved from the penalties. 

The full Federal Court ruling comes in April 2025 following the reappeal of ASIC and counter-appeal of Block Earner. 

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