Australia High Court Backs ASIC in Block Earner Licence Dispute

TLDR

• High Court rules Block Earner’s Earner product needed a licence

• ASIC wins appeal in major crypto product licensing dispute

  

• Penalty issue now returns to Australia’s Full Federal Court

• Court says crypto yield product met financial product definitions

• Block Earner shifts focus toward Bitcoin-backed home loans

Australia’s High Court has backed ASIC in a key crypto licensing dispute involving Block Earner. The court ruled that the former fixed-yield digital asset product needed a financial services licence. The decision now sends the penalties issue back to the Full Federal Court.

High Court overturns Block Earner appeal win

The unanimous 7-0 ruling reversed an earlier Full Federal Court decision that favored Block Earner. Web3 Ventures Pty Ltd operates the company, which once offered the Earner yield product. ASIC argued that the product fell under existing financial product laws.

The High Court found that Earner worked as a facility for financial investment. It also found that the product met the legal definition of a derivative. The court said returns changed with digital asset values and exchange rate movements.

That finding strengthened ASIC’s case that Block Earner needed an Australian financial services licence. The regulator said the missing licence denied users key protections under financial services rules. The dispute now returns to the Full Federal Court for penalty review.

Case adds context to Australia crypto rules

ASIC launched civil penalty proceedings against Block Earner in November 2022. The regulator targeted the Earner product because the company offered it without the required licence. Block Earner closed the product in the same month.

The Federal Court ruled in February 2024 that Block Earner ran an unregistered managed investment scheme. However, the court later relieved the company from financial penalties in June 2024. ASIC challenged that decision, while Block Earner filed its cross-appeal in July 2024.

The Full Federal Court accepted Block Earner’s cross-appeal in April 2025. It also dismissed ASIC’s appeal on penalties at that stage. However, the High Court has now set aside that outcome and revived the regulator’s penalty push.

Block Earner shifts toward crypto-backed lending

Block Earner has since moved away from fixed-yield crypto products. The company received an Australian Credit Licence in May 2026. It then announced plans to develop crypto-backed home loan services.

The proposed product would allow borrowers to use Bitcoin as collateral for home financing. That model would let users access credit without selling their Bitcoin holdings. The licence also marked a notable step for digital asset credit services in Australia.

Still, the High Court ruling gives ASIC a stronger position on crypto product oversight. The decision confirms that current laws can cover digital asset products when they meet financial product definitions. As a result, crypto firms face clearer licensing pressure under Australia’s existing framework.

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