Block Earner CEO Karaboğa: We achieved a historic result for the crypto sector.

EXCLUSIVE INTERVIEW – Block Earner, a cryptocurrency trading platform operating in Turkey, recently achieved an important legal victory for the crypto sector in central Australia. The company won the lawsuit filed by ASIC, which is Australia’s equivalent of the SEC, in November 2022.

ASIC claimed that Block Earner offered its crypto lending product called "Earner" without the necessary financial licenses, asserting that this product should be considered as a "managed investment program", "financial investment instrument", or "derivative product". However, the Federal Court of Australia dismissed ASIC's claims, ruling that the Earner product could not be classified in this manner.

We talked with Çağlayan Karaboğa, the Turkish co-founder and CEO of the company, about this process and the plans in Turkey.

"A historic decision for the entire sector"

Karaboğa stated that the court's decision won against ASIC is a historic ruling not only for Block Earner but also for the entire crypto and digital finance sector. Karaboğa said, "The Federal Court clearly stated that the relationship between us and the users is not a 'financial product' but a debt contract based on crypto assets. It also ruled that these products do not fall under the scope of 'derivative instruments (derivative)' or 'managed investment schemes (managed investment scheme).'"

Stating that this decision shows that it is problematic to evaluate technological financial solutions with old regulatory patterns, Karaboğa said, "In this way, Web3 and fintech startups in Australia will now be able to continue their activities on a much more solid and predictable legal basis. We have made this case not only for ourselves, but also for all innovative initiatives in the sector. The result showed that innovation and regulation can coexist in a balanced way."

"The area where we are strongest is the crypto-collateralized loan product"

The results opened the door to a new era for Block Earner as well. In the upcoming process, the company will continue to offer spot crypto trading, fixed-income investment products, and digital asset management solutions. "The area where we are strongest is our crypto-collateralized loan product," said Karaboğa, noting that they are in a leading position in this field in the Australian market. He added, "Both individuals and businesses can use loans from us by using their crypto assets as collateral without selling them. This product operates under an official credit license and is offered in full compliance with Australian laws. Additionally, through the 'whitelabel' solutions we have developed in collaboration with the leading crypto exchanges in the country, we are integrating this loan infrastructure into other platforms to reach a broader user base."

"A new individual credit market worth 10 billion dollars can be created in Turkey"

The CEO of Block Earner also shared plans in Turkey. Karaboğa stated that they attach great importance to the economic impact that crypto-collateralized loans could create in Turkey, saying the following:

"Currently, billions of dollars in crypto assets in Turkey are idly sitting in individual wallets or on crypto exchanges in what we could call 'under the pillow'. These assets are not integrated into the traditional financial system. With the crypto-collateralized loan model, users can access cash credit without selling their cryptos — that is, without losing their market positions. This both facilitates individuals' access to financing and increases the flow of credit that the Turkish economy needs. Although we do not have definitive data, we anticipate that this model has the potential to create a new individual credit market in Turkey worth approximately 10 billion dollars. We are closely monitoring developments in Turkey. As regulations become clearer, we are making strategic preparations to bring this product in compliance with Turkey-specific legislation. At the same time, we are actively working on potential collaborations, licensed models, and sustainable structures. Turkey is a market with which we have an emotional connection, and where we want to create long-term value."

Published: May 6, 2025 14:55 Last Updated: May 6, 2025 14:56