Australian regulator accuses Block Earner of not having a license

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Australian Securities and Investments Commission (ASIC) accused Block Earner of offering cryptocurrency products and services without regulatory approval.

ASIC announced that Web3 company VenturesPty, also known as Block Earner, is registered with the Australian Financial Transactions Accountability Center (AUSTRAC) but is not licensed to provide financial services in Australia. Without appropriate permission, the company illegally provided services related to cryptocurrencies and operated a cryptocurrency investment scheme, the department claims.

We are talking about several cryptocurrenciesfixed income products: USD Earner, Gold Earner and Crypto Earner, collectively known as Earner Products. The regulator is seeking an injunction against the company's activities and a monetary penalty.

"We are concerned that Block Earneroffered financial products to Australians without regulatory approval. As a result, users were left without legal recourse. Just because a product relates to crypto assets in any way does not mean it is not covered by the Financial Services Act,” says ASIC Deputy Chair Sarah Court.

According to the official, many peopleinterested in purchasing or investing in crypto assets. However, by their nature, cryptocurrencies are highly risky, complex and volatile, so ASIC is concerned that investors may not fully appreciate the risks. In this regard, the department 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  high level of risk. In the same month, ASIC accused BPS Financial of misrepresenting its Qoin token.