Australian financial market regulator continues its crackdown against illegal cryptocurrency offerings, with its latest civil penalty proceedings against Web3 Ventures Pty Ltd, operating under its tradename Block Earner.
The Australian Securities and Investments Commission (ASIC) alleged that the fintech company provided unlicensed financial services with its cryptocurrency offerings and operated an unregistered managed investment scheme.
Block Earner does not have an Australia Financial Services (AFS) license but is an AUSTRAC-registered digital currency exchange. It offered several cryptocurrency-based fixed-yield earning products, including USD Earner, Gold Earner, and Crypto Earner, collectively known as Earner Products.
According to ASIC, these 'Earner Products' are financial products that fall under managed investment schemes and require proper licensing. It is now seeking declarations, injunctions, and pecuniary penalties.
(By Arnab Shome)