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In a major step for the local crypto sector, Sydney-based digital asset fintech Block Earner has been granted an Australian Credit Licence (ACL), becoming the first digital asset platform in Australia to be regulated to provide credit products under its own licence.
The company says the approval from the Australian Securities and Investments Commission (ASIC) is a significant step in the evolution of digital assets within Australia’s financial system, creating a regulated pathway for eligible customers to use digital assets as security for credit.
The licence comes almost a year after Block Earner launched Australia’s first Bitcoin-backed home loan last year, a move that aims to tap into a potential market of around 3.9 million Australians who own cryptocurrency with combined personal holdings of more than $20 billion.
Block Earner says it already has more than $500 million in mortgage demand at the waitlist stage for its new crypto-backed home loans, highlighting a strong appetite from crypto investors looking at property investment via equity in digital assets.
ASIC’s approval now allows Block Earner to undertake its lending activities under its own ACL, enabling the company to originate, underwrite and offer regulated credit products directly.
Previously, the company operated as a credit representative of Mortgage Direct.
“Securing this Australian Credit Licence is a significant milestone for Block Earner and for Australia’s digital asset industry,” says Charlie Karaboga, co-founder and CEO of Block Earner.
“For the first time, a digital asset platform in Australia can provide credit products under its own Australian Credit Licence, creating a regulated pathway for customers to use digital assets as security for credit.
“We welcome ASIC’s continued progress in providing a clear pathway for firms in this space. Digital assets are becoming an increasingly common store of wealth for Australians.
“As that happens, it is important that products built around those assets are brought within established regulatory frameworks that support transparency, responsible lending and appropriate consumer protections.”
Karaboga and Block Earner’s chief commercial officer James Coombes have been appointed as responsible managers for the ACL.
Block Earner has also appointed two senior financial services and investment leaders, Simon Cant and Shiau Sin Yen, to its board to drive the next phase of growth.
Cant is co-founder and managing partner of Reinventure and founding president of FinTech Australia, while Yen is co-founder and managing partner of Titan Fund (CMCC Global).
Block Earner is targeting growing demand from investors seeking to use digital assets with lending products that recognise them as collateral, a market sector that the company says is either not served or underserved by traditional credit providers.
“Securing an Australian Credit Licence is a major step for Block Earner and reflects the increasing maturity of Australia’s digital asset sector,” says Coombes.
“Digital assets are now part of the wealth picture for millions of Australians. The next phase is about ensuring those assets can be used within regulated financial products that meet the standards expected of Australia’s credit system.
“As the first digital asset specialist to obtain an Australian Credit Licence for this purpose, Block Earner is reinforcing its commitment to building within Australia’s established regulatory framework.”
ASIC approval for the ACL comes in the wake of an extended legal stoush by Block Earner with the corporate regulator over its former crypto-related Earner products.
The Federal Court originally found in June 2024 that Block Earner’s USD Earner, Gold Earner and Crypto Earner products were being provided without a financial services licence, but the liability was relieved as the judge found the company had acted honestly and not carelessly.
In a decision described as decisive victory for Australia’s digital asset industry, Block Earner was vindicated last year after the Full Federal Court overturned the earlier court ruling and found that the company’s crypto-related Earner product did not require a financial services licence to operate.
Block Earner says it is also progressing an Australian Financial Services Licence as part of its broader regulatory roadmap, ahead of the implementation of Australia’s Digital Assets Framework.
The reforms are expected to extend the financial services licensing framework to parts of the digital asset sector, consistent with Block Earner’s focus on operating within Australia’s regulated financial system.
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