ASIC's Crypto Crackdown Intensifies: Appeals Federal Court Verdict
Regulator Raises Stakes in Battle Over Crypto Oversight
2
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian Securities and Investments Commission (ASIC) has escalated its efforts in regulating crypto-related activities by appealing a significant Federal Court decision.
This move underscores the regulator's robust stance against crypto products circumventing financial regulations.
In a bold step, ASIC has contested the recent Federal Court ruling by Justice John Jackman, which found digital currency exchange Block Earner guilty of offering unlicensed financial services through its crypto-based Earner product. Despite acknowledging Block Earner's honest and non-negligent conduct, ASIC remains dissatisfied with the outcome.
According to ASIC, the Federal Court judge erred by suggesting that Block Earner depended on legal advice and also profited from its violations. The appeal highlights that regulatory ambiguity should not shield a company knowingly engaging in questionable activities for financial gain.
ASIC aims to overturn the initial judgment and seeks a penalty of $350,000, in addition to the costs incurred during the appeal process. This initiative is emphatic about ensuring stringent regulatory compliance in the financial services sector, particularly concerning burgeoning crypto products.
Notably, Block Earner operates under Web3 Ventures Pty Ltd, an AUSTRAC-registered currency exchange. However, it lacks an Australian Financial Services License (AFSL), a critical regulatory component according to ASIC.
On February 9, 2024, the court concluded that between March and November 2022, Block Earner had been providing unlicensed financial services and running an unregistered managed investment scheme through its fixed-yield product, Earner.
Conversely, the court dismissed ASIC's claims that Block Earner's variable yield crypto-assets offering, known as the Access product, required a financial services license and should be registered as a managed investment scheme.
This rigorous stance by ASIC comes at a time when crypto products are under intense scrutiny worldwide. The appeal underscores ASIC’s commitment to bringing clarity and compliance to the financial services space, leaving no room for regulatory evasion.
Published:Wednesday, 19th Jun 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Markel Insurance has announced the appointment of Tim Wills as Head of Marine for Australia, marking a significant expansion into the country's marine insurance sector. Based in Sydney, Wills will spearhead the introduction of Markel's marine products, starting with marine cargo coverage. This move represents the company's first foray into the Australian market beyond its existing long-tail lines established two years prior. - read more
Pelagic Risk Services, a specialist marine insurance broker, has announced an increased commitment to the Australian marina industry by upgrading its sponsorship of the Marina Industries Association (MIA) from Silver to Gold. This enhanced partnership underscores Pelagic's dedication to supporting marinas across the nation. - read more
Rhodian Group has announced the launch of Marinex Underwriting, a new marine underwriting agency set to address complex marine insurance needs across the Australian market. Backed by global specialty insurance distributor Amwins, Marinex is co-founded by industry veterans Janelle Karnib, Chris Kelly, and Ainsley Smith. - read more
Australia's marine insurance landscape has welcomed a significant new player with the launch of Marinex Underwriting. This specialised marine underwriting agency aims to address the complex insurance needs of the Australian marine sector, offering tailored solutions backed by global specialty insurance distributor Amwins. - read more
In response to recent shifts in global trade dynamics, GT Insurance is reaffirming its commitment to supporting Australian marine clients navigating these challenges. The imposition of US tariffs-25% on Australian steel and aluminium, and 10% on other exported goods-has introduced new uncertainties for local exporters, particularly in sectors like beef and bulk freight. These tariffs, effective from April 5, 2025, have prompted concerns about declining export volumes and reduced freight margins. - read more
When it comes to purchasing a jet ski, choosing the right brand is crucial for ensuring a safe and enjoyable experience. There are various jet ski brands available in Australia, each with their unique features and specifications. - read more
In this article, we'll explore 7 reasons why jet skis are the best way to enjoy the water. From the ability to explore new areas to the thrill of the ride, jet skis offer a unique and exciting experience that everyone should try at least once. So, what are you waiting for? Grab a life jacket and let's get started! - read more
Imagine the splash of water on your face and the adrenaline rush as you glide over waves at exhilarating speeds. The thrill of owning a jetski offers a unique brand of excitement and freedom found only on the open waters. However, before you can make waves, it's essential to navigate the sea of financial considerations that come with purchasing such a prized possession. - read more
Jet skiing is an exhilarating water sport that many Australians enjoy, especially during the warmer months. With the vast and beautiful coastline that the country offers, it's no wonder that jet skis are becoming a popular addition to many households. - read more
Welcome to our deep dive into the unexpected costs of owning a jet ski. While the thrill of skimming across the water on a sunny day is undeniable, it's important to be aware of the hidden expenses that come with owning such a high-adrenaline watercraft. - read more
Knowledgebase
Hard Inquiry: A credit report check by a lender or other entity as part of the credit approval process, which can lower your credit score.
