Australia’s crypto regulation is now advanced enough that startups can be both licensed by ASIC and fighting ASIC in the High Court at the same time.
Australian crypto startup Block Earner has secured a new licence from ASIC while simultaneously involved in a High Court battle with the regulator over an earlier crypto product.
The Sydney fintech announced on Tuesday it had been granted an Australian Credit Licence (ACL). This makes it the first Australian crypto platform licensed to directly offer regulated lending products under its own credit licence.
What makes this particularly interesting is that this has happened while ASIC continues a High Court appeal against the company over its now-discontinued ‘Earner’ product.
This has been one of Australia’s most closely watched crypto regulation cases because of the awkward middle ground Australia’s crypto sector still sits in.
Regulators are trying to bring digital asset businesses into the financial system while still battling in court over how existing financial services laws apply to crypto products.
Why ASIC is still fighting Block Earner in court
The High Court case centres on a separate Block Earner product which allowed users to receive fixed-yield returns linked to crypto assets.
Block Earner shut down the original Earner product shortly before ASIC launched proceedings over the offering.
ASIC originally alleged the product should have required an Australian Financial Services Licence (AFSL). The regulator argued that it amounted to a financial product and managed investment scheme under the Corporations Act.
The Federal Court initially sided with ASIC before the Full Federal Court later overturned that ruling in 2025, finding the product did not require an AFSL.
ASIC then appealed the matter to the High Court, with the case heard in March this year. A judgment is still yet to be delivered.
During the hearing, several High Court judges questioned how broadly ASIC’s arguments could apply beyond crypto products, including comparisons to ordinary bank accounts.
At one point, Justice Michelle Gordon told ASIC’s barrister the arrangement appeared similar to a bank deposit account where customers deposit money and receive a fixed rate of interest.
ASIC argued during the hearing that the case was important because it could help clarify how Australia’s financial services laws apply not just to crypto, but to future financial products more generally.
The case follows a string of legal battles between ASIC and crypto yield platforms, including the regulator’s unsuccessful court battle over Finder Earn in 2024.
What the new licence actually means
The company’s new ACL does not resolve the separate AFSL dispute currently before the High Court. The two matters sit under different parts of Australia’s financial regulatory system.
Block Earner’s new ACL allows the company to directly originate and offer lending products tied to digital assets. This includes its Bitcoin-backed home loan product launched last year.
The product is designed to let crypto holders borrow against their Bitcoin holdings rather than selling them to buy property.
Before receiving the licence, the startup operated as a credit representative under another company’s licence.
The company said its Bitcoin-backed mortgage product had already generated more than $500 million in waitlist demand.
“For the first time, a digital asset platform in Australia can provide credit products under its own Australian Credit Licence, creating a regulated pathway for customers to use digital assets as security for credit,” Block Earner co-founder and CEO, Charlie Karaboga, said.
The licence approval also arrives as ASIC ramps up pressure on crypto businesses ahead of new digital asset laws expected in 2027.
Earlier this month, the regulator warned crypto firms they needed to apply for appropriate licences or licence variations before ASIC’s temporary “no-action” position expires on June 30.
Block Earner is also pursuing an Australian Financial Services Licence (AFSL) as part of its broader regulatory roadmap, which would potentially allow it to offer additional regulated crypto and investment products in Australia.
