Australia’s financial regulator, headquartered in Sydney fintech company Block Earnerunlicensed to cryptocurrency He sued, citing concerns that he was offering the products.
Australian Regulator Sues Fintech Company Alleging Unlicensed Crypto Services
Block Earner offers several product tiers that generate returns from crypto assets. The Australian Securities and Investment Commission (ASIC) claims that these products are unregistered managed investment schemes that must be licensed.
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.
“We are concerned that Block Earner deprives consumers of significant assurances by offering financial products without proper registration or Australian Financial Services licenses,” ASIC Vice President Sarah Court said in a statement.
“Just because a product is based on a crypto-asset does not mean it falls outside of financial services law.” he added.
Block Earner launched its core funding round in 2021, and among Stani Kulechov, CEO of Aave and Coinbase VenturesIt provided 4.5 million dollars from investors including .
The platform lends client assets through the Aave and Compound protocols. The firm’s manager told Business News Australia that the civil filing was “disappointing”.
CEO Charlie Karaboga said, “We welcome regulations in our space.
“We have spent significant resources building the regulatory infrastructure to provide a range of services to Australian users in a regulated and compliant manner under current guidelines provided by ASIC.”
*Not investment advice.
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