Australia’s financial watchdog Australian Securities and Investment Commission (ASIC), filed a lawsuit against Block Earner over suspicions that it sold unregistered crypto products.
According to a statement issued by the regulator, the ASIC opened a civil penalty file with the federal court seeking declarations, injunctions, and pecuniary penalties. The first hearing date has not yet been set by the court.
Several tiers of products are available from Sydney-based Block Earner that give yield on crypto holdings. These products, according to the ASIC, are unregistered managed investment schemes that ought to have been licensed.
ASIC Deputy Chair Sarah Court said in the statement:
“We are concerned that Block Earner offered financial products without appropriate registration or an Australian Financial Services licence, leaving consumers without important protections. Simply because a product hinges on a crypto-asset, does not mean it falls outside financial services law.”
In a statement sent to Business News Australia, Block Earner co-founder and CEO Charlie Karaboga said:
“Although we understand the backdrop, this is a disappointing outcome. We welcome regulation in our space and have spent considerable resources building regulatory infrastructure to be able to deliver a whole suite of services to Australian users in a regulated and compliant manner under existing guidelines provided by ASIC.”
Web3 Ventures Pty Ltd. trades under the name Block Earner, according to the ASIC announcement. It is not authorized by Australian Financial Services (AFS). It is a digital currency exchange that is registered with AUSTRAC.
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