Corporate
High Court grants ASIC special leave to appeal on statutory interpretation
05 Sep 2025
High Court requires ASIC to undertake to cover Block Earner’s costs of the appeal
Sydney – 5 September 2025 — Block Earner acknowledges the decision of the High Court of Australia to grant the Australian Securities and Investments Commission (ASIC) special leave to appeal on questions concerning the interpretation of statutory definitions, including ‘financial product’ and ‘derivative’, in Chapter 7 of the Corporations Act 2001 (Cth), relevant to the issue of whether or not a discontinued Block Earner product was a financial product.
The grant of special leave is conditional upon ASIC agreeing to pay Block Earner’s costs of the appeal. ASIC has 14 days to file a notice of appeal.
The effect of the grant of Special Leave is that the High Court will now hear an appeal in relation to the Full Court’s decision. The outcome of that appeal is uncertain until the High Court ultimately rules on the matter. In April 2025, the Full Federal Court decision found that Block Earner’s now-discontinued Earner product was not a financial product, derivative, or managed
investment scheme. No contravention of the law was found, no customer harm occurred, and ASIC was ordered to pay Block Earner’s legal costs.
Commenting on the High Court’s decision, Charlie Karaboga, CEO and Co-Founder of Block Earner, said:
“We respect the High Court’s decision to grant special leave and welcome the condition that ASIC pay costs related to the appeal. Clear regulations matter, and we hope this approach helps ensure important legal questions can be tested without placing disproportionate burdens on private companies such as Block Earner.”
Block Earner is hopeful that this appeal will contribute constructively to the evolving legal and regulatory landscape for digital assets in Australia.
“Constructive engagement between regulators, innovators and the courts is essential to providing clear rules in a fast-changing environment,” Mr Karaboga said. “We remain confident in the Full Court’s judgment and committed to a responsible and transparent approach to financial services.”
Process and timing
A hearing date has not yet been allocated. We expect that the matter will be heard in the first half of 2026.
As a registered Digital Currency Exchange and Independent Remittance Provider with AUSTRAC, and an authorised Australian Credit Licence Representative of Mortgage Direct Pty Ltd, Block Earner will continue to offer its crypto-backed products and services in accordance with applicable Australian regulations.
