Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has officially requested special leave from the High Court. This move follows a recent Full Federal Court ruling in favor of Block Earner, a crypto lending platform. ASIC’s application aims to detail how interest-earning and asset exchange crypto products fit within existing financial laws.
Background of the Legal Dispute
The case dates back to a February 2024 Federal Court decision. That ruling found Block Earner participated in unlicensed conduct when it offered its fixed-yield product, named “Earner,” between March and November 2022.
Despite this, the court rejected ASIC’s claims against Block Earner’s variable-yield product called “Access.” As a result, the platform avoided sanctions related to the variable-yield product.
In April 2025, the Full Federal Court dismissed the earlier ruling against Block Earner concerning the fixed-yield product. The court concluded that the “Earner” product did not qualify as a financial product under current legislation.
This decision removed the requirement for Block Earner to hold a financial services license for that offering. In the end, ASIC was ordered to pay legal costs related to the original trial.
ASIC’s Call for Legal Clarity
ASIC’s recent application to the High Court centers on clarifying the definition of financial products within the Corporations Act. The regulator insists this definition was drafted completely and technology-neutrally.
It stresses that all financial services, whether for traditional assets or cryptocurrencies, should be very clear.
Special leave to appeal requires the High Court’s permission, which it grants only for vital legal questions or issues of public interest.
ASIC claims that this matter raises basic questions going well beyond the Block Earner case, impacting the wider crypto sector and financial market regulations.
Block Earner’s Position and Industry Implications
Charlie Karaboga, Block Earner’s CEO, accepted ASIC’s application. He pointed out that the issue centers around a general legal interpretation of financial products beyond just the company.
The firm views the Full Federal Court’s April decision as thorough and sound. Block Earner has ceased offering the “Earner” product and has no plans to reopen it.
The company states that its service involves fixed-term crypto loans without pooling funds or exposing users to business risks. Block Earner maintains business and legal policy as the case develops forward.
The High Court has not announced a date for the hearing of ASIC’s request. Other regulations in Australia’s digital asset yield space frequently return to this case for guidance.
