The Australia’s financial regulator will request the authorization of the High Court to appeal a decision of the lower court promoting the company Fintech Block Earner, which found that the gain service for fixed appointments linked to cryptography is not a financial product.
The Australian Securities and Investment Commission (ASIC) said on May 21 that it wanted to ask the High Court of Australia to clarify the definition of a financial product and to clarify the circumstances where a product of interest and the conversion of assets from one form to another are regulated.
“The definition of the financial product has been written in a broad and neutral way, and Asic thinks that it is in the public interest to clarify this,” said the guard dog.
“This clarification is important because it applies to all financial products and services, whether or not they involve crypto-active.”
On April 22, the judges of the Federal Court David O’Callaghan, Wendy Abraham and Catherine Button noted that the fixed gain linked to the crypto-liaison of Block Earner is not a financial product, a managed investment program or a derivative under the law on companies.
The ASIC said the court would examine its request. Special leave is required in an appeal to the High Court, and it is only granted in cases where it answers important legal questions or questions of public interest.
A Block Earner spokesperson told Cintelegraph that the case had now been transferred to a “wider legal question” around the definition of a financial product, which extends “far beyond the essential and the cryptography sector”.
“We believe that the complete decision of April of the Federal Court was a strong and well prosecuted decision that confirmed the integrity of our operations,” said the spokesman. “We remain confident in the solidity of this judgment and respond to the ASIC’s request through the appropriate legal channels.”
Legal saga in progress since 2022
The ASIC first launched legal proceedings against Block Earner in November 2022, arguing that the company needed a license of financial services to offer its performance product which was available from March 17, 2022, until the company La Ferme on November 16, 2022.
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In February 2024, an Australian court initially ruled that the Fintech company would need a license of financial services to exploit its compatible products of cryptography.
Another decision of June 2024 before the Federal Court of Australia released the employee of blocks of any financial sanction because she had “acted honestly” and continued his legal opinions before launching the products, which the ASIC appealed.
Block Earner called on the decision of the Federal Court that she needed a license of financial services on July 9, 2024.
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