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An Australian Federal Court on Thursday dismissed a lawsuit brought by ASIC against the cryptocurrency company Finder Wallet. The ruling issued by Justice Markovic indicated that Finder’s Earn product was ‘compliant’ and did not offer unlicensed financial services.
The Australian Securities & Investments Commission (ASIC), the country’s corporate regulator, initiated legal action against Finder Wallet in December 2022. The regulator claimed that Finder’s Earn product provided a debenture without a disclosure document.
A debenture is a type of debt instrument that is not secured by collateral. Large corporations utilize it to obtain funds at a fixed interest rate.
The regulator contended that the subsidiary Finder Wallet product required an Australian financial services license. Finder Wallet defended its position in the Federal Court, asserting that ASIC had misinterpreted the operation of ‘Earn.’
The company also emphasized that it never guaranteed customers repayment of debts through a deposit. Finder Wallet is registered as a Digital Currency Exchange with AUSTRAC.
Finder’s Global CEO and Co-Founder, Frank Restuccia, expressed satisfaction with the ruling, stating that “we are delighted with this outcome.”
“We understand and respect the importance of good regulation to protect consumers and we engaged openly and proactively with ASIC from the outset.”
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Finder ceased its Earn product in November 2022 and confirmed that it had returned all customer funds. Restuccia noted at that time that the product had become less appealing to customers due to increasing interest rates.
A representative from the company informed CoinDesk that Finder does not intend to reintroduce Earn, “but never say never.”
ASIC Aims to Protect Investors from Harms Posed by Crypto Offerings
The markets regulator has recently intensified its oversight of cryptocurrency firms providing unregistered financial products.
In November 2022, ASIC took action against the fintech company Block Earner, alleging that it offered unregistered crypto yield earning products. A Federal Court concluded the case last month, determining that Block Earner had indeed engaged in unlicensed financial services by offering its crypto-backed Earner product.
In another instance, ASIC initiated civil penalty proceedings against BPS Financial Pty Ltd concerning its crypto-asset Qoin.
The post Australian Court Rules in Favor of Crypto Firm Finder’s Earn Product appeared first on Cryptonews.
