The ongoing legal standoff between Australian fintech firm Block Earner and the country’s top financial watchdog has reached a critical juncture, with the Australian Securities and Investments Commission (ASIC) now seeking to escalate the matter to the High Court of Australia. This next move could potentially shape the future of how crypto-linked financial products are regulated down under.
On May 21, ASIC announced its intention to request special leave to appeal a pivotal ruling from April, in which the Full Federal Court sided with Block Earner. The court had determined that the company’s fixed-yield crypto earning product did not meet the legal threshold of a “financial product” as defined under the Corporations Act. That decision was seen as a significant win not only for Block Earner but also for other fintech innovators operating in the burgeoning crypto asset space.
But ASIC isn’t ready to back down.
According to the regulator, the issue goes beyond Block Earner and touches on a much broader legal question: what exactly counts as a financial product in an era where financial services are evolving at lightning speed? ASIC is urging the High Court to clarify the legal boundaries—especially when it comes to yield-generating services and asset conversion mechanisms, which are increasingly common in the digital finance world.
“The definition of a financial product was drafted to be both broad and technology-neutral,” ASIC stated. “We believe it’s in the public interest to seek legal clarity on how this definition applies in today’s financial landscape, including but not limited to crypto assets.”
If the High Court agrees to hear the case, it could have sweeping implications—not just for companies operating in the digital asset space, but for the entire financial services industry in Australia.
A spokesperson for Block Earner acknowledged the gravity of the situation, telling Cointelegraph that what started as a company-specific case has now grown into a nationwide debate about financial regulation and innovation.
“We view the Full Federal Court’s April ruling as a thoughtful and well-founded decision that supports both legal integrity and business innovation,” the spokesperson said. “This legal question now stretches far beyond us—it’s about regulatory certainty in a modern financial ecosystem.”
The saga began back in November 2022, when ASIC first launched legal proceedings against Block Earner. The regulator argued that the company had been offering its fixed-yield product without a required financial services license. The product had been available from March to November 2022 before Block Earner voluntarily shut it down amid the legal uncertainty.
In February 2024, a lower court sided partially with ASIC, stating that Block Earner would indeed need a license. However, the company was spared financial penalties after the court found that it had acted in good faith, relying on legal advice before launching the product. Block Earner then appealed that decision, leading to the April 2024 ruling in its favor.
ASIC, however, was not satisfied with that outcome. By taking its case to the High Court, the regulator is signaling that it wants to draw a definitive line in the sand—one that could shape how fintech and crypto companies navigate compliance in the years to come.
The High Court will now decide whether to grant ASIC special leave to appeal. Such leave is typically reserved for cases involving legal principles of national significance or those considered to be in the public interest. If approved, the case could become a landmark decision that helps define the regulatory contours of Australia’s digital finance landscape.
For now, Block Earner remains confident in the strength of the court’s prior judgment, stating that it will engage with ASIC’s appeal “through the appropriate legal channels.”
As the regulatory environment continues to evolve, this case underscores the complex balancing act between innovation and compliance in the crypto era—a tension playing out not only in Australia but globally.
