Australian regulator sues Finder Wallet for 'unlicensed' financial services

Quick Take

  • ASIC is suing Finder Wallet over alleged unlicensed conduct and inadequate risk disclosure.
  • The Finder Earn product closely resembled a debenture, ASIC said.

Australia’s financial watchdog sued Finder Wallet, a subsidiary of comparison website, over a crypto-linked yield product.

The Australian Securities and Investment Commission (ASIC) sued the startup for “alleged unlicensed conduct and inadequate risk disclosure,” it said in a statement on Dec. 15.

The product in question, Finder Earn, was offered between February and Nov. 10 this year, and involved converting user deposits in Australian dollars into an Australian dollar-linked stablecoin called TAUD, which Finder then used as working capital. The company offered interest rates on deposits of 4.01% and 6.01%.

ASIC said the product closely resembled a debenture, and therefore required appropriate licensing.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

“This is ASIC’s third recent action against a firm offering a crypto-asset related product that we consider to be a financial product. Our message to industry is clear — just because an offer involves a crypto-asset related product does not guarantee it will fall outside the current regulatory regime,” ASIC deputy chair Sarah Court said.

Finder Wallet stopped offering its Finder Earn product on Nov. 24, returning all funds to customers, after ASIC informed the company of its concerns. ASIC said it is “seeking declarations and pecuniary penalties from the court.”

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.


To contact the editor of this story:
Madhu Unnikrishnan at
[email protected]