|
|
The Australian fintech company Block Earner is planning to launch cryptocurrency-backed loan products, allowing Australian cryptocurrency investors to borrow cash using cryptocurrency as collateral. This comes after the company delayed its court date with financial regulators over allegations of providing financial products without a license.
The new cryptocurrency loan products are expected to be launched by the end of September, initially allowing loans with Bitcoin as collateral. Block Earner co-founder Charlie Karaboga mentioned that these loan products have been designed in a "very conservative manner" to fully comply with existing licensing regulations.
Block Earner faced legal action from the Australian Securities and Investments Commission (ASIC) in November last year, alleging that the company offered fixed-income products related to cryptocurrency without an Australian Financial Services (AFS) license. Karaboga criticized the lack of clarity in regulations at the time and defended his company's efforts to develop products aligned with ASIC's existing guidelines.
While Karaboga acknowledged the lack of clear regulations in Australia, he maintained that they sought legal advice before launching their products and believed that there were insufficient regulations or licenses available for their application.
Block Earner is now working to introduce cryptocurrency products that comply with credit licensing rules, aiming to avoid the regulatory challenges it faced with its previous "Earn" products.
James Coombes, Block Earner's Chief Business Officer, emphasized the distinction between their new product and their earlier "Earn" product, stating that the new offering complies with credit licensing rules.
Looking ahead, Karaboga suggested that faster regulatory progress in jurisdictions such as Singapore, Hong Kong, and the UK may prompt Australian regulators to catch up or risk losing market share in the cryptocurrency industry. He anticipates greater clarity in the regulatory landscape in the next 12 to 18 months.
Karaboga also noted that due to Australia's high per capita GDP and its citizens' early adoption of cryptocurrency, Australians have become major targets for scammers. He ultimately asserted that domestic regulatory bodies are strongly supportive of cryptocurrency and aim to "drive innovation" forward.
Ben Rose, General Manager of Binance Australia, echoed this sentiment, expressing his belief that Australian regulators will provide long-term support for cryptocurrencies.
Coinbase, a major cryptocurrency firm, recently identified Australia as one of its key expansion locations outside the United States on September 6.
Block Earner's Federal Court hearing is scheduled for November this year, with a decision expected in January 2024. |
|
Post time 12-9-2023 13:39:03