Block Earner Unveils Crypto-Backed Loan Product for Australian Market Despite Regulatory Tussle
Block Earner introduces a crypto-backed loan product for the Australian market, overcoming regulatory challenges. This article highlights the launch and potential benefits for Australian crypto investors.
Posted 10 months ago in Blockchain
Block Earner has unveiled a new crypto-backed loan product for the Australian market, amid an ongoing tussle with a federal regulator over its shuttered Earn product.
Block Earner, a leading Australian fintech firm, is forging ahead with its plans to launch a crypto-backed loan product, despite its ongoing legal battle with the country's financial regulator. The new offering will allow Australian crypto investors to use their crypto assets as collateral to secure cash loans.
Similar to SALT, a lending platform based in Colorado, the crypto-backed loans from Block Earner offer a convenient way for investors to access funds without needing to sell their digital assets. The major cryptocurrency exchange Coinbase previously offered a similar service to its U.S. customers but discontinued it earlier this year.
The initial launch of Block Earner's crypto-backed loan product is slated for the end of September and will initially only support loans using Bitcoin as collateral. According to Charlie Karaboga, the co-founder of Block Earner, the loans have been designed in a conservative manner to align with existing licensing regulations.
Block Earner has been embroiled in legal challenges in the past, having been sued by the Australian Securities and Investments Commission (ASIC) for allegedly offering crypto-linked fixed-yield earning products without the necessary financial license. Despite this, the company asserts that its new product complies with the regulations and has already obtained the required Australian credit license.
Looking ahead, Block Earner believes that faster regulatory progress in countries like Singapore, Hong Kong, and the United Kingdom will exert pressure on the Australian government to catch up. Australia, being one of the wealthiest countries and an early adopter of crypto, needs to stay competitive in the global market for crypto enterprises and protect its citizens from scams.
With its Federal Court hearing scheduled for November, Block Earner remains optimistic about the future of crypto innovations in Australia. The company's confidence is shared by industry experts, who believe that Australian regulators will ultimately support the growth and development of the crypto industry in the long run.
Last updated 9/9/2023, 3:54:32 AM
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