Court Spares Block Earner Fine for Unlicensed Conduct After Legal Advice
CryptoNewsTerminal Staff04 Jun, 2024
Court Spares Block Earner Fine for Unlicensed Conduct After Legal Advice
Court Sides with Block Earner in Licensing Dispute In a recent ruling, an Australian court has spared fintech company Block Earner from financial penalties despite finding that the company engaged in unlicensed financial services. ASIC Lawsuit and Court Findings The Australian Securities and Investments Commission (ASIC) had filed a lawsuit against Block Earner in November 2022, alleging that the company offered unlicensed crypto-asset-based managed investment schemes. The court's February ruling acknowledged ASIC's claims but accepted Block Earner's argument that it had acted in good faith based on legal advice. Company's Defense Block Earner maintained that it believed a license was unnecessary when the product was launched. The court found this defense persuasive, concluding that the company had "formed the genuine belief...that a license was not required." Significance of the Ruling This ruling highlights the importance of seeking legal guidance in the rapidly evolving fintech landscape. It also underscores the courts' willingness to consider a company's intent when determining penalties for alleged regulatory violations.
