Business
Australia’s Block Earner Secures ASIC Credit Licence in Major Boost for Crypto Lending
Block Earner has secured an Australian Credit Licence from ASIC, becoming the first digital asset platform in Australia allowed to directly provide regulated crypto-backed credit products under its own licence. The Sydney-based fintech says the approval creates a regulated pathway for Australians to use cryptocurrency holdings as collateral for lending products, including home loans. The company already claims more than $500 million in mortgage demand through its waitlist service. The licence approval follows Block Earner’s major court victory against ASIC last year and comes as Australia prepares broader reforms for the country’s growing digital asset and cryptocurrency sector.
Block Earner is granted an Australian Credit Licence (ACL) by ASIC, making Block Earner directly offer crypto-backed credit products under its own licence, which makes it Australia’s first digital asset lender.
Key Highlights
- Australian Credit Licence awarded to Block Earner by ASIC
- Block Earner is Australia’s first regulated crypto credit platform
- Over $500MM mortgage demand in backlog
- Approximately 3.9 million Australians are cryptocurrency owners
- Company expects more growth under Australia’s digital asset reforms
Block Earner Becomes First Licensed Crypto Credit Platform in Australia
Block Earner recently received an Australian Credit Licence (ACL) from the Australian Securities and Investments Commission in what the company described as a key milestone for Australia’s digital asset industry. This will be the first time in Block Earner’s history that they’re able to directly offer regulated credit products with digital assets staked as collateral under their own license.
The company used to be a credit representative for Mortgage Direct. The Sydney-based fintech said the license opens regulated access to the country’s financial system for Australians looking to get lending products using their cryptocurrency holdings.
Soaring Interest in Crypto-Backed Lending Products
Last year, Block Earner released the first crypto-backed home loan product on the market, following an estimated 3.9 million Australians owning cryptocurrency with total holdings of more than $20 billion. According to the company, it has already recorded over $500 million in mortgage demand in just the waitlist stage due to heavy interest from crypto investors looking to leverage their digital assets for property. The new licence allows Block Earner to originate, underwrite and directly provide regulated lending products secured against accounts backed by digital asset holdings.
Leadership Changes At Company As Crypto Regulations Develop
It is a major milestone for Block Earner and Australia’s crypto landscape as digital assets are becoming increasingly formalised, with Australians treating them less like gambling and more like wealth, said Block Earner CEO Charlie Karaboga.
The firm also added investment professionals Simon Cant and Shiau Sin Yen to its board as it gears up for further growth. The licensing greenlight arrives after Block Earner was able to win a monumental legal battle last year when the Full Federal Court overturned an earlier decision and ruled its crypto-linked Earner product did not require a financial services licence. As part of wider digital asset reforms due to be handed down on Australia’s shores, the company is now also targeting an Australian Financial Services Licence.
FAQs
- What is Block Earner?
Block Earner is a fintech company based in Australia that offers digital asset and crypto-backed financial products.
- What licence did Block Earner obtain?
The business acquired an Australian Credit Licence from ASIC
- Why is the licence important?
This allows Block Earner to offer regulated crypto-backed lending products directly.
- What is the demand for crypto-based home loans by the company?
Already, Block Earner says that the amount of loan demand on its waiting list has surpassed $500 million.
- What was the outcome in Block Earner’s court case against ASIC?
The Full Federal Court overturned a previous decision and supported the company’s cryptocurrency-related Earner product.
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