The Federal Court has rejected the corporate regulator's claim that Finder.com subsidiary, Finder Wallet, did not provide unlicensed financial services, in relation to its crypto-asset related product, Finder Earn.

The Australian Securities and Investments Commission (ASIC) had alleged that Finder Earn was a debenture, as customers deposited money with Finder Wallet with the understanding that their money would be repaid, along with a return for allowing Finder Wallet to use their capital. However, the Court ruled against ASIC's contention and found that Finder Earn was not a debenture. ASIC now has 28 days to lodge any application for appeal to the Full Federal Court.

Finder Wallet was an AUSTRAC-registered Digital Currency Exchange. Finder Earn was shut down a month before ASIC lodged its claim with the Federal Court.

ASIC Executive Director Enforcement and Compliance, Tim Mullaly, said: 'ASIC pursued this matter because we considered that this product was being offered without the appropriate licence or authorisation and therefore without the benefit of important consumer protections.' The ruling is a significant development in the evolving regulatory landscape for crypto-related financial services in Australia.