Australia's ASIC appeals Finder Wallet defeat

The Australian Securities and Investments Commission (ASIC) has appealed its decision against Finder Wallet’s Earn product. Previously, the Federal Court of Australia ruled that Finder Wallet’s Earn product complied with Australian financial regulations. ASIC had previously argued that Finder Wallet operated its income-based product without the proper license or authorization. However, on March 14, Federal Court Judge Brigitte Markovic ruled that ASIC had failed to prove that Finder Wallet’s Earn product constituted a “bond” as defined in the Corporations Act. In its appeal document dated April 10, ASIC challenged Judge Markovic’s ruling, arguing that the judge had “misjudged” on this issue. ASIC noted that investors did not deposit funds or provide loans to Finder Wallet when using the Finder Earn product. In addition, ASIC stressed that Finder Wallet did not assume any obligation to repay debts. In another statement on April 10, ASIC argued: "ASIC appealed this decision because it was concerned that the Finder Earn product was provided without proper licensing or authorization and therefore did not receive important consumer protection." Its appeal will be heard by the full judges of the Federal Court at a date to be determined. The court is responsible for hearing appeals from the Federal Court on matters of "sufficient importance." A Finder spokesperson said the company was "disappointed" with ASIC's decision not to accept the Federal Court's ruling, but was prepared to actively defend its products in the full Federal Court. (Cointelegraph) Previously in March, the Federal Court of Australia dismissed ASIC's lawsuit against Finder Wallet in December 2022. The case claimed that its cryptocurrency interest-bearing product Finder Earn was a (corporate) bond, and therefore it violated the Corporations Act and conducted financial services business without holding an Australian Financial Services License (AFSL). However, the court ruled that ASIC "did not prove that the Finder Earn product was a bond" and ordered it to pay the defendant's costs.