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ASIC seeks to impose fine on this cryptocurrency firm from 2022, court interferes
The Australian Securities and Investments Commission (ASIC) has appealed a federal court’s ruling that acquitted cryptocurrency provider Block Earner of paying a fine for offering unlicensed financial services related to its digital asset product.
The Australian regulator announced on Tuesday that it had appealed the Federal Court decision and would continue to seek the imposition of a financial penalty. He had previously asked for 350,000 Australian dollars.
It is interesting to note that the Court had previously found that Block Earner was engaged in unlicensed financial services and was operating an unregistered managed business investment plan from March to November 2022.
While we recognize the seriousness of Block Earner’s violations, the Court granted the relief on June 4, citing among other factors that the company had acted honestly and not negligently when offering the Earner product. ASIC appealed against this ruling, filing a notice of appeal setting out the reasons why it believes the Court erred in granting the relief.
“From the beginning, it was never our intention to break or circumvent the rules,” commented Charlie Karaboga, CEO of Block Earner, after the Court’s latest decision. consultancy and the creation of a complete risk framework”.
And now?
Block Earner, a digital currency registered by AUSTRAC exchange which operates without an Australian Financial Services (AFS) licence, had faced allegations from ASIC that both its fixed return Earner product and its variable return Access product constituted financial products requiring a licence.
While the Court upheld ASIC’s claims regarding the Earner product, it rejected claims relating to the Access product. ASIC has confirmed it will not appeal the Court’s findings on the Access product.
“Cryptocurrency-backed products should be considered financial products requiring a license under the law,” Sarah Court, deputy president of ASIC, commented in February. “Crypto assets are risky, inherently volatile and complex. ASIC remains concerned that consumers do not fully understand the risks associated with products involving crypto-assets.”
The Full Federal Court will hear ASIC’s appeal at a date yet to be determined. The outcome could set a precedent for how Australian regulators approach enforcement actions against crypto firms and the standards to which such firms are held to under financial services laws.
The Australian Securities and Investments Commission (ASIC) has appealed a federal court’s ruling that acquitted cryptocurrency provider Block Earner of paying a fine for offering unlicensed financial services related to its digital asset product.
The Australian regulator announced on Tuesday that it had appealed the Federal Court decision and would continue to seek the imposition of a financial penalty. He had previously asked for 350,000 Australian dollars.
It is interesting to note that the Court had previously found that Block Earner was engaged in unlicensed financial services and was operating an unregistered managed business investment plan from March to November 2022.
While we recognize the seriousness of Block Earner’s violations, the Court granted the relief on June 4, citing among other factors that the company had acted honestly and not negligently when offering the Earner product. ASIC appealed against this ruling, filing a notice of appeal setting out the reasons why it believes the Court erred in granting the relief.
“From the beginning, it was never our intention to break or circumvent the rules,” commented Charlie Karaboga, CEO of Block Earner, after the Court’s latest decision. consultancy and the creation of a complete risk framework”.
And now?
Block Earner, a digital currency registered by AUSTRAC exchange which operates without an Australian Financial Services (AFS) licence, had faced allegations from ASIC that both its fixed return Earner product and its variable return Access product constituted financial products requiring a licence.
While the Court upheld ASIC’s claims regarding the Earner product, it rejected claims relating to the Access product. ASIC has confirmed it will not appeal the Court’s findings on the Access product.
“Cryptocurrency-backed products should be considered financial products requiring a license under the law,” Sarah Court, deputy president of ASIC, commented in February. “Crypto assets are risky, inherently volatile and complex. ASIC remains concerned that consumers do not fully understand the risks associated with products involving crypto-assets.”
The Full Federal Court will hear ASIC’s appeal at a date yet to be determined. The outcome could set a precedent for how Australian regulators approach enforcement actions against crypto firms and the standards to which such firms are held to under financial services laws.