December 5, 2022

Australian regulator accuses Block Earner of not having a license

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Australian regulator accuses Block Earner of not having a license

The Australian Securities and Investments Commission (ASIC) accused Block Earner of offering crypto-currency products and services without the permission of the regulator.

ASIC announced that Web3 company Ventures Pty,also known as Block Earner, is registered with the Australian Financial Accounting and Analysis Center (AUSTRAC) but is not licensed to provide financial services in Australia. Without proper permission, the company illegally provided services related to cryptocurrencies and managed a crypto-currency investment scheme, the agency claims.

We are talking about several cryptocurrency products withfixed income: USD Earner, Gold Earner and Crypto Earner, collectively known as Earner Products. The regulator seeks a court ban on the company's activities and a monetary penalty.

“We are concerned that Block Earner was offeringAustralians financial products without regulatory approval. As a result, users were left without legal remedies. If a product is in any way related to crypto assets, this does not mean that it is not subject to the financial services law, ”said ASIC Vice Chair Sarah Court.

According to the official, many people are interested inbuying or investing in crypto assets. However, by their very nature, cryptocurrencies are very risky, complex and volatile, which is why ASIC is concerned that investors may not fully appreciate the risks. In this regard, the agency supports the development of a regulatory framework for the regulation of digital assets that would protect the rights of traders and investors.

In October, the Australian regulator suspendedthe activities of three cryptocurrency funds of the Australian company Holon due to the high level of risk. In the same month, ASIC accused BPS Financial of providing false information when promoting the Qoin token.