In a landmark win for Australia’s fintech sector, the Federal Court has sided with Finder.com, ruling that its discontinued crypto yield product Finder Earn was not a financial instrument. That decision ends a nearly three-year legal battle with the Australian Securities and Investments Commission (ASIC) and may open the door for more innovation in the country’s crypto and Web3 space.
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Court Says Earn Product Isn’t a “Financial Product”
The ruling, handed down Thursday by Justices Stewart, Cheeseman, and Meagher, upholds a March decision and officially closes ASIC’s appeal. In plain terms: the court found that Finder Earn, which let users deposit funds in return for 4–6% annual yield, did not violate financial product regulations.
Finder welcomed the ruling, writing in a blog post that the verdict reinforces its position that the product was built with compliance in mind.
“This is a win not just for Finder, but for fintech in Australia,” said Fred Schebesta, Finder’s founder, in comments to Cointelegraph. He said the court’s decision “creates a path” for other emerging crypto services to be safely offered under clear rules.
What Was the Issue?
Finder Earn ran from February to November 2022. The product let customers convert Australian dollars into stablecoins and earn yield through Finder Wallet. At its peak, over 500,000 TAUD (TrueAUD), or around $336,000, had been deposited; all of which were returned to customers when the product shut down.
But ASIC took issue with the structure, arguing that it resembled a debenture or financial security and should have been licensed under traditional investment rules. The case marked the first time a crypto product was tested against Australia’s legal definition of a debenture.
ASIC lost the initial court case in March. Then, after lodging an appeal, it lost again this week.
“We Built It with Integrity,” Says Founder
Schebesta said the product was created in open dialogue with regulators and stressed that Finder’s goal was to build something transparent from day one.
“This was about innovation pushing ahead of regulation,” he said.
When asked what comes next, Schebesta hinted that the battle may have cleared the path for something even bigger. “I have something massive I’ve been working on that will build upon this win,” he said.
A Boost for Crypto Fintechs in Australia
The decision sends a clear signal across Australia’s Web3 and fintech landscape. If structured correctly and transparently, crypto yield products may not automatically fall under traditional financial regulations.
That gives companies some legal breathing room to develop compliant products in areas like staking, yield, and tokenized assets; assuming they engage with regulators early and often.
This ruling doesn’t rewrite ASIC’s regulatory framework today, but it sets a clear legal precedent going forward. Moreover, ASIC may be required to update their relevant Regulatory Guides. For crypto yield products in particular, the court’s decision clarifies that not all offerings fall under traditional financial product laws.
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