The Australian Securities & Investments Commission (ASIC) has obtained High Court special leave to appeal a Full Federal Court decision that digital asset service provider Block Earner did not need an Australian financial services licence to offer its fixed-yield digital asset-related Earner product. ASIC is seeking a High Court ruling on what falls within the definition of a “financial product”, including when interest-earning products and products involving the conversion of assets from one form into another are regulated, on the basis that the definition is intended to be broad and technology-neutral. Block Earner offered the Earner product to investors from March 2022 to November 2022, providing fixed-yield returns from different digital assets. Special leave was granted on the condition that ASIC pays Block Earner’s costs of the appeal; ASIC has 14 days to file a notice of appeal, and the High Court will set the hearing date. The case follows ASIC civil penalty proceedings commenced in November 2023 alleging unlicensed financial services conduct and operation of an unregistered managed investment scheme, a February 2024 Federal Court finding of unlicensed conduct for the Earner product, and an April 2025 Full Federal Court decision allowing Block Earner’s cross-appeal and dismissing ASIC’s appeal.

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