The High Court of Australia unanimously ruled 7:0 in favor of supporting the Australian Securities and Investments Commission (ASIC) in its appeal against Block Earner's old fixed-income digital asset product Earner, determining that the product must hold an Australian Financial Services license under current law. The court found that the product offered by Web3 Ventures Pty Ltd (trading as Block Earner) constitutes a financial investment instrument, and because investor returns vary with the value of the underlying digital assets and exchange rates, it meets the definition of a derivative. The case will be remanded to the full bench of the Federal Court to decide on ASIC's appeal regarding the penalties issued in the previous Federal Court proceedings. ASIC filed a civil penalty proceeding against Block Earner in November 2022, claiming that it offered the Earner product without a license. Block Earner voluntarily shut down the product in November 2022 and shifted to businesses such as crypto-supported home loans. (The Block)

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