The Federal Court has found that Finder Wallet Pty Ltd did not provide unlicensed financial services in relation to crypto-asset related product Finder Earn.
ASIC alleged that the Finder Earn product was a debenture. This is because customers deposited money with Finder Wallet on the understanding that their money would be repaid, together with a return for allowing Finder Wallet to use their capital. The Court rejected this contention and found the product was not a debenture.
ASIC Executive Director Enforcement and Compliance Tim Mullaly said, 'ASIC pursued this matter because we considered that this product was being offered without the appropriate licence or authorisation and therefore without the benefit of important consumer protections.'
ASIC will consider the judgment carefully. ASIC has 28 days to lodge any application for appeal to the Full Federal Court.
