Australia's ASIC has announced their intent to challenge the dismissal of the case involving Finder's crypto asset product. The decision to appeal was made due to concerns that the Finder Earn product was offered without the necessary license or authorization, putting consumers at risk without important protections.

Reports indicate that ASIC has formally filed an appeal against the Federal Court's decision to dismiss their case against Finder Wallet Pty Ltd. The allegations against the company include providing unlicensed financial services, violating product disclosure laws, and failing to meet design and distribution responsibilities for their product, Finder Earn, which is linked to crypto assets.

The Finder Earn product was deemed a debenture by ASIC. The Federal Court's rejection of ASIC's arguments on March 14, 2024, led to the dismissal of the case. Believing that the Finder Earn product lacked proper licensing and consumer protections, ASIC has chosen to appeal the ruling.

Finder's Decision to Discontinue Crypto Asset Product

The Australian Federal Court's previous ruling to dismiss ASIC's case against Finder Wallet, a subsidiary of Finder.com, caused a stir in the market. Justice Brigitte Markovic upheld Finder Wallet's compliance with financial regulations regarding their crypto assets, rejecting ASIC's claims of regulatory infringements.

The court emphasized the importance of adhering to licensing and compliance requirements for financial products. Finder viewed the ruling as a significant victory and stated that the decision to discontinue Finder Earn was based on strategic business factors rather than regulatory pressures, particularly in response to evolving market conditions such as rising interest rates.