Australian crypto startup Block Earner has secured an Australian Credit Licence (ACL) from ASIC, enabling it to offer regulated lending products directly, even as ASIC continues its High Court appeal against the company’s now-closed crypto yield product.
- Block Earner granted first crypto platform Australian Credit Licence
- ASIC pursues High Court appeal over prior crypto yield product
- Licence enables Bitcoin-backed home loan product origination
What happened
Block Earner, an Australian crypto fintech startup, has been awarded an Australian Credit Licence (ACL) by the Australian Securities & Investments Commission (ASIC). This licence allows the company to directly offer regulated lending products secured by digital assets such as Bitcoin, including its Bitcoin-backed home loan product launched last year. Prior to this, Block Earner operated credit offerings under another licence’s umbrella as a credit representative.
The licensing decision arrives amid an ongoing High Court battle between Block Earner and ASIC concerning a now-discontinued product called 'Earner'. ASIC initially argued this yield product required an Australian Financial Services Licence (AFSL), classifying it as a financial product and managed investment scheme under the Corporations Act. The courts have issued split rulings, culminating in the Full Federal Court ruling that an AFSL was not required, with ASIC appealing this decision to the High Court earlier this year. A final judgment is still pending.
Why it matters
Block Earner becoming the first Australian crypto platform licensed to provide credit products under its own ACL sets an important regulatory precedent. It signals regulatory openness to integrating certain digital asset offerings within Australia’s formal financial system while boundaries remain contested in related legal proceedings. This dual regulatory approach reflects the broader industry’s unsettled status as authorities aim to balance investor protection with fostering innovation.
The unresolved High Court case has broader implications beyond crypto, with justices questioning how broadly ASIC’s interpretation of financial services laws could apply to conventional products like bank deposits. The outcome may clarify obligations for future financial innovations, impacting not only crypto services but also other emerging financial products seeking regulatory certainty.
What to watch next
The High Court’s forthcoming decision on the AFSL dispute will be pivotal for defining the regulatory treatment of crypto yield products in Australia. Its ruling could establish important legal boundaries for digital asset businesses operating under existing financial statutes. Meanwhile, ASIC is escalating its licensing enforcement, urging crypto firms to secure appropriate licences ahead of the expiry of its temporary no-action position on June 30, 2026, signaling tighter supervision on digital asset activities.
Block Earner’s pursuit of an Australian Financial Services Licence remains ongoing, which would enable it to broaden its suite of regulated crypto and investment offerings. The firm’s developments occur in the lead-up to Australia’s expected new digital asset laws in 2027, which are anticipated to further formalize regulatory frameworks governing crypto businesses and products in the country.