PANews, June 17: According to The Block, the High Court of Australia unanimously ruled 7-0 in favor of the Australian Securities and Investments Commission (ASIC) on its appeal regarding Block Earner’s previously launched fixed-income digital asset product, determining that the issuance of such a product requires an Australian Financial Services License under current law. The High Court stated in a court document that the product offered by Web3 Ventures Pty Ltd, operating under the name Block Earner, constitutes both a financial investment instrument and meets the definition of a derivative, as investor returns fluctuate with changes in the value of the underlying digital assets and exchange rates. The case will be remanded to the Full Court of the Federal Court to rule on ASIC’s appeal concerning penalties raised in the prior Federal Court proceedings.
Australia's High Court Rules That Block Earner's Digital Asset Product Requires a Financial License
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Summary
Australia's High Court ruled that Block Earner's digital asset product is subject to digital asset regulations and requires an Australian financial services license. The court determined that the product constitutes both a financial investment and a derivative, with returns linked to digital asset values and exchange rates. The case will return to the Full Federal Court to determine penalties. The ruling aligns with broader efforts in countering the financing of terrorism and financial oversight.
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