Australia’s High Court Rules Crypto Yield Products Require Licensing

The High Court determined that the fixed-yield product offered by Web3 Ventures, operating as Block Earner, functioned as both a financial investment facility and a derivative. Because investor returns were tethered to the volatility of underlying digital assets and exchange rates, the court concluded the product required a formal financial services licence. This judgment effectively reverses an April 2025 ruling from the Full Federal Court and returns the case to that same body to determine appropriate penalties for the company.

ASIC Chair Sarah Court welcomed the decision, emphasizing that Australia’s financial product laws are technology-neutral and broad enough to cover emerging digital sectors without requiring specific legislative updates. While the dispute highlights a major regulatory win for ASIC, Block Earner has moved past the controversy. The firm shuttered its yield product in 2022 and shifted its focus toward credit services. In May 2026, the company secured an Australian Credit Licence to develop crypto-backed home loans, marking a significant pivot toward integrating digital collateral into traditional mortgage markets.