Australia’s financial regulator has sued FinTech company Block Earner for unlicensed crypto services.
Block Earner offers a variety of product services that generate returns on crypto assets. The Australian Securities and Investment Commission (ASIC) claims that these products are unregistered managed investment schemes that must be licensed.
Unlicensed Product Lawsuit From Australian Regulator to Block Earner
Australia’s financial regulator has sued Sydney-based Block Earner, citing concerns that the FinTech company is offering unlicensed crypto products.
According to the regulatory agency’s statement, ASIC has filed a civil criminal case in federal court seeking “declarations, injunctive relief, and monetary penalties.” The court has yet to set a date for the first hearing.
Sarah Court, ASIC Vice President, said in a statement:
“We are concerned that Block Earner is depriving consumers of significant protections by offering financial products without proper registration or an Australian Financial Services license. Just because a product is based on a crypto-asset does not mean it falls outside of financial services law.”
Block Earner CEO: Criminal Case Disappointed
The executive of Block Earner, a FinTech company backed by Aave and Coinbase, said the civil filing was disappointing.
The CEO of the company, Charlie Karaboga, responded to the allegations as follows:
“We welcome regulations in our space and have spent significant resources building regulatory infrastructure and providing many services to Australian users in a regulated and compliant manner under current guidelines provided by ASIC”
“We have applied for an Australian Credit License for our future products for which licensing requirements are clear and we have notified ASIC of our intention to apply for AFSL,” Karaboga said.
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