The Australian Federal Court rejected the Australian Securities and Investment Commission (ASIC), which tried to appeal the court decision made in favor of the Block Earner crypto company.

The regulator claims that Block Earner offered users an Earner financial product without a license, violating the Australian laws on securities. However, the court once again ruled that the Earner program does not correspond to the legal definition of securities.

The court explained that Block Earner offered lending, and not an investment scheme that should be strictly regulated. Block Earner has concluded a regular credit agreement with clients, according to which they provided the companies with their crypto assets for fixed profits. An important point was that the user funds were not united, and the agreements were concluded separately with each client. Clients were not interested in other financial transactions of Block Earner, except for the receipt of agreed interest.

The Earner program was not a controlled investment scheme, since the product information was presented in detail, and the rights of customers were recorded in the contract, and they did not depend on investment results, the court emphasized.

Charlie Karaboga, Executive Director and co -founder of Block Earner, said that the company has always sought to comply with regulatory requirements. The commercial director of Block Earner, James Coombes, added that the authorities’ clear position of crypto actures will allow companies to responsibly create new financial products. Despite the fact that the court made a decision in favor of the company, it will not return the Earner product to the Australian market.

ASIC began a trial against Block Earner in November 2022, but last year the Australian Federal Court rejected the regulator’s accusations against Block Earner and released the company from the payment of a fine.