According to Cointelegraph: An Australian federal court has dismissed a lawsuit by the Australian Securities and Investments Commission (ASIC) against Finder Wallet, a subsidiary of Australian fintech firm Finder.com. The court determined that Finder Wallet's yield-bearing product, Finder Earn, complied with financial legislation.
In the ruling given on March 14, Justice Brigitte Markovic stated that ASIC had failed to prove that the Finder Earn product was a debenture (a debt security) as defined in the Corporations Act. She ruled that any contraventions of the Corporations Act based on Finder Earn being labeled a debenture could not be established, thus dismissing the proceeding with costs.
ASIC had previously sued Finder Wallet in December 2022, alleging its Finder Earn product was an unlicensed financial product and required a financial services license.
Frank Restuccia, Finder Global CEO and co-founder, viewed the court's decision as affirmation of Finder's compliance with regulatory obligations. Meanwhile, an ASIC executive stated the regulator would consider the judgement carefully.
The dismissal of the lawsuit represents a significant event in the evolving discourse of cryptocurrency regulation in Australia. The court's decision could potentially impact future determinations related to crypto-based financial products would require licensing and abiding by existing financial regulations.