Finder Earn: A Landmark Victory for Crypto Innovation in Australia

Key Points

1. Finder Earn allowed customers to deposit AUD for a fixed yield, with funds used for crypto-related lending, but ASIC viewed it as a potential 'managed investment scheme' requiring regulation.

2. The Federal Court ruled Finder Earn does not qualify as a 'managed investment scheme' under the Corporations Act, as returns depended on Finder's activities, not collective investment performance.

3. The decision provides regulatory clarity for similar fixed-yield crypto products, distinguishing them from traditional financial products like managed funds or derivatives.

4. ASIC may still push for stronger crypto regulation, but the ruling highlights the need for tailored frameworks rather than forcing crypto into existing financial product categories.

5. Consumers using products like Finder Earn face higher counterparty risks and less regulatory protection compared to traditional bank deposits, emphasizing the need for due diligence.