Australian Court finds Finder Earn was not financial product
The Australian Federal Court has found that Finder Wallet Pty Ltd did not provide unlicensed financial services in relation to crypto-asset related product Finder Earn.
The Australian Securities and Investments Commission (ASIC) alleged that the Finder Earn product was a debenture. This is because customers deposited money with Finder Wallet on the understanding that their money would be repaid, together with a return for allowing Finder Wallet to use their capital. The Court rejected this contention and found the product was not a debenture.
ASIC says it will consider the judgment carefully. The regulator has 28 days to lodge any application for appeal to the Full Federal Court.
Finder Wallet is an AUSTRAC-registered Digital Currency Exchange.
Entities providing services in relation to crypto-related products should be aware that such products may be financial products.
A range of Australian laws apply to entities giving advice, dealing, providing insurance, or providing other intermediary services for crypto-assets that are financial products. These include the requirement to hold an AFS licence or appropriate authorisation by an AFS licence holder.