**Block Earner Partners with Aussie Crypto Research Powerhouse Collective Shift**

Block Earner, the home of Australia’s [Crypto-Backed AUD Loans](https://blockearner.com.au/crypto-backed-loans/), today announces a strategic partnership with [Collective Shift](https://collectiveshift.io/), the leading Australian Crypto Research and Portfolio Specialists. [James Coombes](https://blockearner.com.au/about-us/james-coombes/), Director at Block Earner says “the partnership empowers Australian investors with enhanced educational materials and expert insights while strengthening community connections, showcasing the opportunities available in the world of crypto.”

**Aiming for Unmatched Market Insights**

Through this partnership, Block Earner and Collective Shift work together to deliver comprehensive resources for Aussie crypto investors. Combining market research and analysis, with the most innovative consumer and business facing financial products being developed anywhere in the country.

[Ben Simpson](https://x.com/bensimpsonau), Founder at Collective Shift says: "We are very selective when it comes to who we partner with. Not only does the ethos of Block Earner match ours, our customer bases have significant overlap. I’m excited about what we can accomplish together."

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*Ben Simpson, Founder at Collective Shift & James Coombes, Director at Block Earner*

**Building a More Informed Crypto Community**

Block Earner and Collective Shift are committed to fostering a more informed crypto community by offering regular updates and in-depth analyses of market trends. The partnership will focus on addressing the common misconceptions and challenges faced by crypto investors, helping them understand the risks and opportunities associated with digital assets.

By combining the strengths of Block Earner's leading product suite and Collective Shift's Crypto portfolio insights, the partnership is poised to set a new standard for crypto success in Australia. 


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Through this partnership, Block Earner and Collective Shift work together to deliver comprehensive resources for Aussie crypto investors.

Corporate

Block Earner Partners with Aussie Crypto Research Powerhouse Collective Shift

After being nominated as a finalist in 4 categories for FinTech Australia's 2024 Finnies Awards! 🏆 

🏅 Excellence in Consumer Lending
🏅 Blockchain/ Distributed Ledger
🏅 Crypto and Digital Currencies/ Wallets/ Exchanges
🏅 Emerging FinTech Organisation of the Year   

We're thrilled to announce that Block Earner has won **Excellence in Blockchain/Distributed Ledger** at the 2024 FinTech Australia #Finnies Awards! 

This achievement is a testament to the hard work and dedication of the entire [Block Earner team](https://www.linkedin.com/feed/update/urn:li:activity:7204678724582014978/).

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Today, millions of Australians hold over $25 billion AUD in crypto assets. We are beyond proud to provide crypto hodlers across Australia with better access to the digital economy and the next generation of finance.

Thank you to all our team members and to #FinTechAustralia for all the work they do in advocating for our industry! 🚀

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This achievement is a testament to the hard work and dedication of the entire Block Earner team.

Brand

Block Earner Wins Excellence in Blockchain/Distributed Ledger! 🏆 

*Block Earner Relieved of Liability to Pay a Penalty in Significant ASIC Case*

**Sydney, 4th June 2024** – In a resolution of important proceedings with implications for the crypto/startup ecosystem, Block Earner has been relieved of liability to pay a penalty in a high-profile case brought by the Australian Securities and Investments Commission (ASIC). This decision not only relieves Block Earner of any financial penalty, but also acknowledges the reputational damage resulting from inaccurate statements made by ASIC in a press- release following the Court’s earlier decision about liability.

While the Court earlier found that Block Earner had contravened financial services law in respect of a previous product offering (no longer offered), the Court was satisfied that Block Earner had acted honestly, and consistently sought to conduct its business lawfully. The Court also found that the company made genuine attempts to comply with the Corporations Act, and that there was no evidence suggesting that Block Earner acted carelessly or imprudently. The Court and ASIC also both agreed that no customers had suffered loss as a result of the conduct in question.

**Context, background and liability judgment**

In November 2022, ASIC initiated proceedings against Block Earner, alleging that the company required an Australian Financial Services Licence (AFSL) for its Earner and Access products, which offered customers access to yield related to cryptocurrency products. The regulator characterised this as a 'test case' to explore the applicability of financial services law to crypto-related products.

Block Earner argued in the proceedings that its products did not constitute financial products having regard to the technical definitions of the Corporations Act. The Earner product, which offered fixed yield, was sunset in November 2022, and all customers were made whole, including any interest owed.

On 9th February 2024, Justice Jackman of the Federal Court of Australia found that Block Earner had contravened the Corporations Act by offering the Earner product without an AFSL and appropriate ASIC registration. However, the Court found that Block Earner did not need an AFSL for the Access product and the claims brought by ASIC regarding the Access product were dismissed. For a more detailed summary of that judgment see: [Federal court judgment: ASIC v Block Earner](https://www.gtlaw.com.au/knowledge/federal-court-judgment-asic-v-block-earner)

**Court’s Decision and Reasoning**

On 15 May 2024, a further hearing was held to determine whether Block Earner would be required to pay a penalty in respect of the contraventions (and if so the amount of the penalty).

Today, the Court delivered judgment. Justice Jackman was satisfied that Block Earner should be relieved from having to pay a penalty in relation to its contraventions relating to the Earner product. In determining that Block Earner should be relieved from paying a penalty, Justice Jackman acknowledged that he was “satisfied that Block Earner acted honestly”, including because in seeking to consider whether Block Earner was offering or providing financial products that required an AFSL, Block Earner obtained legal advice on that question. The judgment also recognised that Block Earner’s participation in policy discussions and seeking to engage with the government on proposals related to cryptocurrency showed a willingness to engage with government and regulatory bodies on effective ways to regulate crypto-related products and services.

Further, the Court was satisfied that this engagement evidenced that Block Earner has at all times sought to conduct its business in a lawful manner and has not consciously sought to provide cryptocurrency in a way that contravenes the Corporations Act. Further, the Court acknowledge Block Earner’s evidence on each occasion when Block Earner has identified that it does require a licence to provide a product, it has sought and obtained the appropriate authorisations.

The Court also commented on a media release that ASIC made following the liability judgment. His Honour found that the media release, which has now been withdrawn, had a tendency to lead readers into error (albeit that was unintentional on ASIC’s part) because it indirectly suggested Block Earner needed an AFSL for its existing products (which was not the case as Earner had been withdrawn).

Because Block Earner was successful in its argument that it ought to be excused from a penalty, the Court also found that ASIC is required to pay Block Earner’s costs relating to the penalty hearing.

**Impact on the Crypto Industry**

The conclusion of these proceedings, pending any appeal, marks significant progress for the crypto industry, which has faced regulatory uncertainty and active regulatory enforcement action globally.

Charlie Karaboga, CEO of Block Earner, stated, “From the beginning, it was never our intention to break or circumvent the rules. As a startup, we did everything within our power to comply, including obtaining legal advice and creating a comprehensive risk framework. While we are obviously disappointed about the findings of contravention in relation to the Earner product, we are pleased that the judge recognized our honest efforts and relieved Block Earner from liability for the penalty.”

**Challenges and Damages**

Despite the favourable ruling today, the proceedings have been burdensome on Block Earner, including incurring over $300,000 in legal fees defending these proceedings, significant reputational harm, and the loss of key partnerships.

**A Path Forward**

Block Earner remains committed to fostering innovation and providing clarity to its customers. The company believes that these proceedings will help give further regulatory clarity to other startups, helping them to navigate the regulatory landscape with greater confidence, and continue to innovate for the benefit of Australian consumers, and within the framework of the relevant laws and regulations.

—

This press release is intended to provide a balanced view of the recent court decision and its implications for the crypto industry, encouraging more publications to highlight the positive impact of the ruling on innovation and regulatory clarity.

For media inquiries, please contact:
marketing@blockearner.com.au

**ENDS**


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BlockEarnerASIC

Block Earner Relieved of Liability to Pay a Penalty in Significant ASIC Case

Block Earner Relieved of Liability to Pay a Penalty

We're excited to announce that Block Earner has won the **2024 WeMoney Innovation Awards Lending Innovation of the Year!** 

Our loans enable Australians to borrow AUD using their cryptocurrency holdings as security. A pioneering approach that addresses the immediate financial needs of Australians looking to maintain exposure to their crypto.

With over 4 million Aussies holding $25 billion AUD in crypto assets, we are proud to be leading the innovation of consumer lending, redefining accessibility and the financial empowerment of crypto hodlers across Australia.

A massive thank you to WeMoney for their recognition and to all our [team](https://www.linkedin.com/feed/update/urn:li:activity:7203221813097623552/) members! 🚀


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A massive thank you to WeMoney for their recognition and to all our team members! 

Block Earner Wins Lending Innovation of the Year! 🏆 

*Federal Court of Australia judgment delivered in Australian regulator ASIC’s case vs Crypto Startup Block Earner.*

**Australia, February 9th, 2024: **In a landmark decision, the Federal Court of Australia delivered judgment in proceedings brought by the Australian Securities and Investment Commission (ASIC) against Block Earner, a Sydney-based crypto start-up.

The Court's decision carries nuanced implications for Block Earner and the broader crypto industry in Australia. The decision provides guidance to the industry as to the applicability of Australian financial services laws to crypto-related products and services.

The judgment of Justice Ian Jackman dismissed ASIC’s allegations relating to Block Earner’s DeFi “Access” service. The judgment found that Block Earner did not breach financial services laws by providing Access. The Court found that the Access service is not a financial product and did not involve unlicensed financial services conduct, allowing Block Earner to continue offering this key component of its services. The result reinforces Block Earner's standing in the industry as a provider of decentralised finance (DeFi) solutions.

The Court found that Block Earner's fixed-yield "Earner" service, which Block Earner voluntarily withdrew in November 2022, was an unregistered managed investment scheme and an investment facility, and accordingly the company engaged in unlicensed financial services conduct for this product. Block Earner no longer provides Earner.

**Regulatory Clarity for DeFi and the Crypto Industry:**

DeFi has become a focal point within the crypto space, promising to revolutionise the way customers can transact (including by borrowing and lending). The dismissal of ASIC’s case against Access is an important development in showing how DeFi can coexist with Australia’s regulatory frameworks, paving the way for further development and adoption of DeFi solutions.

**Maintaining Regulatory Compliance:**

Block Earner, in its official statement, emphasised its commitment to complying with regulatory obligations while providing everyday Australians with access to the benefits of DeFi. This commitment reflects the delicate balance that innovative companies must strike between pushing boundaries and operating within established legal frameworks.

**Conclusion:**

Block Earner can continue offering Access, and the case provides guidance for other crypto businesses seeking to comply with the Australian financial services regulatory landscape. As the industry grapples with the need for clear guidelines, this case highlights a positive step forward. The Court's findings that Block Earner's Access service did not breach relevant financial services laws provides a glimpse into a future where DeFi can thrive within the existing regulatory landscape, fostering further innovation and positive change in the crypto space.

**About Block Earner:**

Block Earner is an Australian based FinTech powered by blockchain technology. We’re on a mission to provide a user-friendly interface for everyday Australians to access the benefits of decentralised finance. Providing more freedom for how their money is stored, moves, and grows. Block Earner is a digital asset provider, with digital vaults secured with Fireblocks, an ISO and SOC2 certified asset custodian.

**ENDS**

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Federal Court of Australia judgment delivered in Australian regulator ASIC’s case vs Crypto Startup Block Earner.

Court Dismisses Part of ASIC Case Against Block Earner Products

**Block Earner Secures Investment from Upside DAO and Launches New Fundraising Round to Unlock $25 Billion in Australian Crypto Wealth**

*On the back of launching Crypto-Backed AUD Loans, blockchain fintech Block Earner starts a new fundraising round, to unlock $25 billion worth of Australian crypto wealth, pioneering new lending options for Australians.*

**SYDNEY, AUSTRALIA – 16 October, 2023** – In September 2023, blockchain-powered fintech Block Earner, introduced Australia's Crypto-Backed AUD Loans, revolutionising lending in Australia. On the back of this achievement, Block Earner has launched its Pre-Series A fundraising round, with new investment announced from Australian Web3 Venture Organisation [Upside](https://www.upsidedao.com.au/), and follow-on investment from [Framework](https://framework.ventures/) Ventures, and [Long Hash](https://www.longhash.vc/investment/) Ventures.

Block Earner has begun its Pre-Series A fundraising round as the first Australian Crypto-Backed Loans provider with an Australian Credit Licence representative authorisation. The fundraising will further propel Block Earner towards its vision of seamlessly expanding traditional financial services with blockchain technology and decentralised finance.

**Upside investment**

Upside has committed its maximum investment to Block Earner, with 100% of voters in favour of investing. Reflecting strong confidence in the growth trajectory of the company within the Australian landscape. In a growing Australian Web3 sector, Upside stands as a key contributor, fostering innovation and nurturing a thriving ecosystem. As a decentralised autonomous organisation (DAO), Upside distributes decision-making among its members. This unique approach facilitates strategic investments and governance in an inclusive and egalitarian manner. The investment into Block Earner was unanimously supported by Upside’s DeFi (Decentralised Finance) Working Group, comprised of some of Australia’s most experienced participants.

**Block Earner business strategy**

The Block Earner mission centres around creating a seamless and unified wealth management product that combines the everyday utility of traditional financial services with the power of blockchain technology, making money borderless, frictionless, and accessible to all. Since the initial launch in March of 2021, Block Earner has delivered a comprehensive suite of services that enables users to effortlessly manage their finances, invest in digital assets, and participate in decentralised finance — all through a user-friendly web and mobile application.

A refocused business strategy at Block Earner is built on recognising the untapped potential of cryptocurrency assets in Australia, which based on research by [Roy Morgan](https://www.roymorgan.com/findings/over-1-million-australians-now-own-cryptocurrencies-such-as-bitcoin-ethereum-ripple-cardano-dogecoin-and-shiba-inu), is estimated to be around $25 billion AUD. This wealth often remains illiquid due to the lack of loan solutions that accept crypto as collateral. The Block Earner Crypto-Backed Loan product directly addresses this challenge, allowing users to access liquidity in Australian dollars directly to customers bank accounts within 24 hours, while retaining ownership and exposure to their crypto holdings.

Block Earner customers now have the option to borrow Australian dollars using Bitcoin or Ethereum as security. Ethereum-backed loans provide comparison rates starting at 5.95%, while Bitcoin-backed AUD loans start at 7.95%. Users can expect an on-the-spot approval process, with AUD transferred to their bank within 24 hours of approval. Block Earner provides fixed interest rates over 12-month terms, flexible repayment schedules that enable users to make repayments when it best suits their individual needs.

**Market leadership, demand and potential**

As the first ACL authorised representative Crypto-Backed Loan provider in Australia, Block Earner has a unique position in serving a market segment that has long been underserved and overlooked. A survey of 1,060 Australian crypto owners conducted by YouGov revealed that 61% are highly likely to consider collateralised crypto-backed loans in the next 12 months, indicating substantial demand.

The top reasons for considering a crypto-backed loan include instant approvals (51%) and lower interest rates (48%), reflecting the market's appetite for efficient lending solutions. The estimated $25 billion AUD crypto investment market in Australia presents significant potential for our innovation to unlock substantial wealth for productive use.

**Diverse users and usage scenarios**

The survey indicated that 71% of respondents were males aged 35-49, typically holding higher degrees and full-time employment, reflecting a well-educated and financially stable customer base. Respondents expressed interest in using our loans for various purposes, such as unexpected expenses (31%), significant purchases (26%), and leisure activities (25%), showcasing the versatility of our product.

**Quotes**

**Charlie Karaboga, CEO and Co-Founder at Block Earner says:** “There's an estimated A$25 billion worth of cryptocurrency sitting on the side lines in Australia right now. The introduction of Crypto-Backed Loans will empower Australians whose digital assets have been underserved by traditional providers. As industry veterans, we understand the profound utility this product brings to the sector.”

**Kyall Walker, General Manager at Upside says:** “Upside is excited to support the founders and team at Block Earner, whose mission and vision for the future align closely with our members. By providing enhanced accessibility, utility, and compelling new reasons to embrace digital assets and decentralised finance, we believe Block Earner is well-positioned to reshape the lending landscape and revolutionise finance in Australia.” 

*YouGov research methodology: the survey was commissioned by Block Earner, and administered by YouGov. It was conducted online between 5th-11th of May 2023, among a sample of 1,060 Australian crypto owners aged 18+.*

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Upside has committed its maximum investment to Block Earner, with 100% of voters in favour of investing. Reflecting strong confidence in the growth trajectory of the company within the Australian landscape. 

Block Earner News & Announcements

Block Earner Partners with Aussie Crypto Research Powerhouse Collective Shift

Block Earner Wins Excellence in Blockchain/Distributed Ledger! 🏆

Block Earner Relieved of Liability to Pay a Penalty

Block Earner Wins Lending Innovation of the Year! 🏆

Court Dismisses Part of ASIC Case Against Block Earner Products

Block Earner Secures Investment from Upside DAO

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