The Block Earner reported that the launch of a new product became possible after the court of Sydney, who admitted that cryptocredites did not fall under financial regulation.
Earlier, the Australian Securities and Investment Commission (ASIC) tried to oblige Block Earner to get a license. However, the court freed the product from the requirements of the Law on Finsites.
The funds of borrowers are placed on the Fireblocks platform, and Bitcoin is used as a deposit for a loan in a fiat currency in the amount of up to 50% of the real estate value, representatives of Block Earner say. The cryptocurrency fee is complemented by a classic mortgage. The creditworthiness of customers is estimated not only for income and savings, but also in the size of the portfolio with digital assets, the company explained.
The Block Earner believes that the mortgage secured by bitcoin will help to some extent cope with the crisis of housing in the country. In Australia, real estate prices exceed average income by almost 10 times, in Sydney – by 14. The cost of real estate in bitcoins looks lower, since the first cryptocurrency has risen in price by 84% per year.
Earlier, Alan Kirkland, the Alan Kirkland Commissioner, said that local cryptocurrency services will oblige to receive a license to provide financial services (AFS).
Source: Bits
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