Bitcoin holders can now use cryptocurrency as collateral for Block Earner mortgages after ASIC court win

Cryptocurrency investors will no longer have to choose between owning Bitcoin or buying a home, with the first Bitcoin-backed home loan launching in Australia. Block Earner said it would become the country’s first Bitcoin-backed home loan provider after winning a lengthy court case with the corporate regulator, successfully arguing it did not require a financial services licence to offer its products. In a statement, Block Earner said it would continue to work collaboratively with regulators to bring a clear benefit to Australian consumers. “Block Earner continues to operate business-as-usual and remains fully committed to compliance, innovation, and building products that benefit Australian consumers,” it said. With Australian Securities and Investments Commission court proceedings out of the way, Block Earner saud recognising Bitcoin as a legitimate asset class would help with Australia’s housing affordability woes. “Traditional, affordability metrics, based on wage growth and Australian dollar figures, suggest a worsening housing crisis,” Block Earner said. “But when homes are priced in inflation-resistant assets such as Bitcoin and gold, the picture shifts, and long-term holders of these assets may find their relative purchasing power has increased. “In 2016, the average Australian home cost 627 BTC (Bitcoin) or approximately 350 ounces of gold. By 2024, that had dropped to just 4.3 BTC or approximately 170 ounces of gold.” Block Earner said its Bitcoin-backed home loan product provided an inclusive, asset-backed path from Bitcoin holder to homeowner, allowing people to enter the property market without having to sell their Bitcoin. Block Earner chief executive and co-founder Charlie Karaboga said the launch of crypto-backed home loans was a turning point for property finance and digital assets. “Crypto holders shouldn’t have to choose between holding Bitcoin and buying a home,” he said. “We’re giving them a smarter option, a way to put their crypto to work without giving it up. “This product isn’t just innovative, it’s inevitable.” Customers can pay interest-only for up to four years with either crypto or Australian dollars. Block Earner said it would approve loans within 24 hours with no lock-in or early repayment fees. Interest rates will start at 9.50 per cent a year, with a 40 per cent loan-to-value ratio (LVR) and comparison rates of 11.93 per cent a year with an 80 per cent LVR. The fixed rate is 11.50 per cent a year for 12 months with 50 per cent LVR, while the comparison fixed rate is 12.17 per cent with 80 per cent LVR. Block Earner said its initial soft launch had accumulated more than $110 million in mortgage demand.