ASIC (Australian Securities & Investment Commission) has sued Block Earner over its supposed unlicensed digital asset offering to the public. Block Earner is an Ave and Coinbase-backed company.
Meanwhile, it operates an unregulated managed investment organization that interrupts the capital market regulations of Australia, according to the watchdog. ASIC told the court that Crypto Earner, Gold Earner, and USD Earner were financial assets under an investment structure that required regulatory approval.
Sara Court, ASIC Deputy Chair, stated that concerns remain that Block Earner ran its business without registration or license from the Australian Finance Services, leaving users without adequate protection.
She added that products hinging on crypto don’t fall out of the financial laws. The securities regulator pursues civil penalties against the financial lending firm, seeking injunctions, declarations, & consequences from the court. Block Earner views the allegation as disappointing but said it understands the regulator’s stance.
The fintech firm reiterated that it took the necessary approach to avoid losing client funds, similar to FTX while guaranteeing users that they can withdraw money anytime. The company’s CEO, Charlie Karaboga, stated that it was a disappointing move, but Block Earner welcomes regulation.
He added that they had spent several resources creating a regulatory infrastructure to deliver massive services to Australian consumers in a compliant and regulated approach under ASIC’s existing guidelines. Block Earner received backing from Aave and Coinbase. The firm aims to shift the financial markets face through DLT (distributed ledger technology) solutions.
Securities Watchdogs Up Their Game
Securities regulators have shown increased interest in monitoring the digital assets space globally. For instance, the United States Securities & Exchange Commission has resorted to an active approach by growing its digital assets watchdog team & and suing bad actors that violate regulations.
Thailand’s SEC adopted a massive move, banning digital asset providers from providing lending and staking solutions after some exchanges imploded amidst the Terra crisis. The agency entered a legal battle with the leading crypto exchange Bitkub, citing irregularities.
Meanwhile, Singapore’s securities regulators ordered digital asset providers to restrict advertising to official channels and offer all details during the advertisement.