Australian Federal Court Rules in Favor of Finder.com on Yield Product
The Australian Federal Court delivered a ruling in favor of fintech company Finder.com, affirming the compliance of its yield-generating product, Finder Earn, with consumer financial laws. The decision concluded nearly three years of legal disputes with the Australian Securities and Investments Commission (ASIC).
In its Thursday ruling, the court, presided over by Justices Stewart, Cheeseman, and Meagher, upheld a previous judgment that Finder Wallet and Finder Earn adhered to relevant regulations.
Finder.com confirmed the outcome in a subsequent blog post, stating the court found Finder Earn was not a financial product.
This latest ruling solidified a March decision by the court, despite ASIC filing an appeal three months prior.
Finders Earn, an offering active between February and November 2022, enabled users to convert Australian dollars into stablecoins, transferable to Finder Wallet, earning a 4% to 6% annual yield. The company reportedly returned all customer funds, totalling over 500,000 TrueAUD ($336,000).
According to Finder, this case represents the first time the legal definition of debenture concerning cryptocurrency has been considered by an Australian court.
Finder.com’s founder, Fred Schebesta, welcomed the decision, framing it as a significant milestone for the Australian fintech industry:
“This is a win not just for Finder, but for fintech in Australia,” said Schebesta. “We need to give Australians compliant, secure access to the next generation of investment opportunities, because these emerging crypto services deserve trusted, well-regulated pathways.”
He emphasized the company’s commitment to transparency throughout development and noted the case underscored the need for regulatory frameworks to adapt to innovation.
The ruling is viewed as setting a precedent, potentially facilitating greater innovation in the Australian fintech landscape.
