Australian Regulator Accuses Block Earner of Operating Without a licence

The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against Block Earner, alleging it provided unlicensed financial services in relation to its crypto-asset-based products and that it operated an unregistered managed investment scheme. https://t.co/uAoiNiovdc

— ASIC Media (@asicmedia) November 23, 2022

According to the press release, Block Earner is a trademark of Web3 Ventures Pty Ltd. The firm is registered with AUSTRAC, but did not hold a licence to provide financial services.

ASIC noted that Block Earner offered a range of crypto-asset-based products and used an unregistered investment scheme. The instruments involved fixed-income products: USD Earner, Gold Earner and Crypto Earner.

“We are concerned that Block Earner offered financial products without the requisite authorisation, leaving consumers without legal remedies,” the statement said.

Representatives from ASIC reminded of the risks of investing in cryptocurrencies and stressed that they support the development of an “effective regulatory framework” to protect users.

According to PureProfile research, in 2021 the share of Australian residents who buy or continue to hold cryptocurrencies rose from 18.4% to 28.8%.

In May 2022 the Commonwealth Bank of Australia delayed the rollout of crypto trading due to regulatory uncertainty.

As reported, in November ASIC suspended the licence to provide financial services, issued to the local arm of the bitcoin exchange FTX.

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