Thomas Daniels
Australia’s Federal Court has delivered a significant victory for fintech company Finder.com, ruling in favor of its yield-generating product, Finder Earn, in a legal dispute with the Australian Securities and Investments Commission (ASIC). This decision comes after nearly three years of legal proceedings, solidifying Finder’s position within Australia’s evolving fintech landscape.
In a landmark ruling on Thursday, Justices Stewart, Cheeseman, and Meagher upheld an earlier judgment, affirming that both Finder Wallet and Finder Earn complied with Australian consumer financial laws. The court confirmed that Finder Earn does not qualify as a financial product, a key finding in the legal battle.
The decision marked the conclusion of ASIC’s appeal, which followed a previous court ruling in March, where Finder Earn had been deemed compliant with the nation’s financial regulations. This case is notable for being the first instance in an Australian court where the legal definition of a debenture has been scrutinized in relation to cryptocurrency products, according to Finder.
Launched between February and November 2022, Finder Earn enabled users to convert Australian dollars into stablecoins on the platform, subsequently transferring them to Finder Wallet in exchange for an annual yield ranging from 4% to 6%. The fintech company has since refunded all customer funds, amounting to over 500,000 TrueAUD (TAUD), equivalent to approximately $336,000.
Fred Schebesta, Founder of Finder.com, celebrated the ruling as a pivotal moment for the Australian fintech sector. “This is a win not just for Finder, but for the entire fintech industry in Australia,” Schebesta remarked. “Australians deserve secure and compliant access to innovative investment opportunities, such as staking, yield generation, and NFTs. These emerging crypto services must have trusted, well-regulated pathways, just like any other asset class,” he added.
Schebesta emphasized that Finder Earn was built with transparency and integrity from the outset, with regular consultations with ASIC. He also described the case as one in which innovation outpaced regulation. Looking ahead, Schebesta hinted at an upcoming project that would build upon the recent legal victory, suggesting new developments on the horizon.
