From hallandwilcox.com.au: On April 22, 2025, the Full Federal Court ruled that Web3 Ventures Pty Ltd (Block Earner) did not breach financial services laws, overturning earlier decisions and clarifying that fixed interest crypto lending products may not automatically be classified as financial products.

The court found that Block Earner’s ‘Earner’ product did not constitute a managed investment scheme or a financial investment as it involved a fixed return based on a standalone contractual obligation without shared risk.

This decision may influence the regulatory landscape for crypto businesses, as it emphasizes the importance of legal structure over economic function in determining financial product classifications.