Australia’s highest court has handed a major victory to the country’s financial regulator, ruling that crypto platform Block Earner’s former fixed-yield product should have been operated under a financial services licence.
In a unanimous 7-0 decision released on June 17, the High Court of Australia found that Block Earner’s Earner product fell within the scope of existing financial laws. The court concluded that the product functioned as both a financial investment facility and a derivative, bringing it under regulatory requirements overseen by the Australian Securities and Investments Commission (ASIC).
The ruling overturns an earlier decision by the Full Federal Court and marks one of the most significant legal decisions involving crypto products in Australia.
High court backs ASIC’s position
The case began with ASIC’s civil proceedings launched in November 2022. The regulator argued that Block Earner offered its Earner product without holding the required financial services licence.
According to the High Court, returns generated through the product were tied to movements in underlying digital asset prices and exchange rates. That structure meant the offering met the legal definition of a regulated financial product.
ASIC said the decision confirms that Australia’s financial laws are broad enough to cover crypto-related products without the need for new legislation.
ASIC Chair Sarah Court welcomed the judgment, saying it reinforces the regulator’s long-standing view that financial product rules are technology-neutral and apply equally to emerging digital asset services.
Legal battle returns to federal court
The dispute has moved through several levels of Australia’s court system over the past two years.
In February 2024, the Federal Court ruled that Block Earner had operated an unregistered managed investment scheme. While the court later declined to impose financial penalties, ASIC appealed that decision in June 2024.
Block Earner responded with a cross-appeal, and in April 2025, the High Court overturned that judgment, reviving ASIC’s challenge.
The matter will return to the Full Federal Court, which will determine issues related to penalties.
Block Earner moves focus to crypto lending
The Earner product at the centre of the case was voluntarily shut down by Block Earner in November 2022.
Since then, the company has changed its focus toward crypto-backed lending services. In May 2026, Block Earner secured an Australian Credit Licence and unveiled plans to offer home loans backed by Bitcoin collateral.
The proposed product aims to allow borrowers to use their Bitcoin holdings to secure mortgage financing without selling their digital assets, reflecting growing interest in linking crypto assets with traditional financial services.
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