ASIC Fails to Impose Any Penalty on Block Earner for Unlicensed Offerings

A federal court in Australia has favoured Block Earner, a cryptocurrency company, by relieving it from the liability of paying a penalty for offering interest-bearing crypto products without an appropriate licence.

A Regulatory Disappointment?

The judgement today (Tuesday) followed actions by the Australian Securities and Investments Commission (ASIC) against Web3 Ventures Pty Ltd, which operates as Block Earner. The regulator said it is “reviewing the decision.”

Block Earner offered several cryptocurrency-based fixed-yield earning products, including USD Earner, Gold Earner, and Crypto Earner, collectively known as Earner Products. The company operated as an AUSTRAC-registered digital currency exchange but did not hold an Australian Financial Services (AFS) licence.

According to ASIC
ASIC

The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the

The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the
Read this Term, these ‘Earner Products’ are financial products that fall under managed investment schemes and require proper licensing. It is now seeking declarations, injunctions, and pecuniary penalties.