Block Earner says a recent federal court decision over its Earner and Access products carries “nuanced implications” for the broader crypto industry in Australia.
An Australian federal court has seemingly formed a nuanced distinction over crypto-yield products, ruling that while products that promise a managed yield will require a financial services license, “pass-through” decentralized-finance (DeFi) products may not.
In a Feb. 9 order, federal court judge Ian Jackson ruled that Block Earner would be subject to penalties over the offering of its “Earner” product in 2022, which offered yield for loans denominated in USD Coin (USDC), Bitcoin (BTC), Ether (ETH) and PAX Gold (PAXG), explaining that it needed to obtain an Australian Financial Services License (AFSL).
However, Jackson refrained from lumping Block Earner’s DeFi “Access” product into the same boat, explaining that it didn’t operate under a managed investment scheme and, therefore, no AFSL was required.
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Source: https://cointelegraph.com/news/block-earner-ruling-australian-court-distinction-crypto-yield-products