According to Odaily, Charlie Karaboga, co-founder of Australian crypto startup Block Earner, has expressed his belief that regulatory enforcement often leads to the worst outcomes, not only for regulatory bodies but also for users, as it tarnishes the reputation of industry companies. Karaboga emphasized that while regulatory bodies have a duty to protect consumers and investors, they must distinguish between malicious actors and well-intentioned innovators.
Karaboga also stated that stakeholders in the Australian cryptocurrency market hope that the court's decision not to penalize Block Earner will encourage the Australian Securities and Investments Commission (ASIC) to adopt a less aggressive stance. Similarly, stakeholders anticipate that ASIC's setback will prompt the parliament to establish 'clear rules that allow us to operate legally here.'
Previously, the Australian Federal Court waived a fine against fintech company Block Earner, which had been ruled to have offered a cryptocurrency income product without a financial services license. On June 4, Judge Ian Jackman ruled that Block Earner had acted honestly when launching its income product 'Earner.' The company had considered obtaining a license, but its research and legal advice suggested that it was not necessary.
Block Earner's founder and CEO, Charlie Karaboga, stated that they had obtained legal advice before launching the product, demonstrating their honesty and doing everything possible as a startup. The judge dismissed the $234,000 (350,000 AUD) fine requested by the Australian Securities and Investments Commission (ASIC). On June 4, ASIC announced at a press conference that it was reviewing the decision.