Australian Court Clears Block Earner of Allegations Regarding DeFi “Access” Service
An Australian court has ruled in favor of Block Earner in a legal case brought by the Australian Securities and Investments Commission (ASIC). The court dismissed allegations related to Block Earner’s DeFi “Access” service but found that the company engaged in unlicensed financial services with its crypto-backed Earner product. ASIC had accused Block Earner of providing unlicensed fixed-yield earning products based on crypto assets. However, Block Earner had voluntarily withdrawn its fixed-yield “Earner” service with support from Coinbase. The court’s decision provides clarity on when crypto-backed products should be considered financial products requiring licensing under the law, according to ASIC’s Deputy Chair Sarah Court.
Block Earner Allowed to Resume Offering DeFi “Access” Service
With the dismissal of allegations against Block Earner’s DeFi “Access” service, the company can continue offering this particular service. However, Block Earner will face a fine for engaging in unlicensed financial services conduct, which will be determined in a scheduled hearing on March 1, 2024. Australia has been increasing its scrutiny of the crypto industry, with actions such as restricting access to Australian dollar deposits and withdrawals by cryptocurrency exchange Binance Australia. The Australian government has also proposed subjecting digital asset platforms to the same laws governing other financial services providers. In response to these restrictions, Blockchain Australia has launched new initiatives to address crypto scams and frauds.
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