Australian Regulators Pursue Lawsuit Against Finder Wallet Provider, Testing Legal Definitions Around Crypto as Lobbyists Plead to Avoid Regulation by Enforcement

Australian regulators are pursuing a lawsuit against wallet provider Finder, sparking a legal battle that is testing the boundaries of crypto regulations in the country. The case, which revolves around disputed legal definitions rather than alleged wrongdoing, has drawn comparisons to the regulatory crackdown happening in the US.

The Australian Securities and Investments Commission announced its decision to move forward with litigation against Finder Wallet, a registered crypto exchange owned by Finder.com.au. The lawsuit alleges that Finder Wallet operated a financial services business without the necessary license and offered a debenture without proper documentation.

The case has attracted attention from industry experts and lobbyists, who are advocating for clear and tailored regulations to support the growth of the crypto industry in Australia. Michael Bacina, the chair of Blockchain Australia, emphasized the importance of providing clear guidance and engaging with regulators early on to avoid the pitfalls of regulation by enforcement seen in the US.

While the legal battle in Australia mirrors the challenges faced by crypto players in the US, Australia is taking steps to implement bespoke regulations for crypto exchanges. The Treasury has proposed licensing requirements for exchanges, which would provide clarity and protections for consumers in the industry.

As the legal fight continues, stakeholders in the crypto community are closely watching the developments in Australia and the potential implications for the broader regulatory landscape. Stay tuned for more updates on this evolving story.