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Australia has made history by approving the world’s first Bitcoin-backed mortgage after a successful legal battle. This groundbreaking decision paves the way for other crypto lending firms to follow in its footsteps.
The approval comes as a result of Block Earner, a leading digital asset lender, winning a court case against financial regulators who argued that crypto-backed loans should fall under traditional banking regulations. The Federal Court, however, ruled in favor of Block Earner, allowing the company to offer Bitcoin as collateral for home loans without needing a financial services license.
This innovative approach is expected to provide an alternative solution to Australia’s housing affordability crisis, which has seen average house prices nearly 10 times greater than the average household income. The new mortgage structure will allow borrowers to use their Bitcoin holdings to secure up to 50% of a property’s value as cash.
To ensure the security and integrity of the digital assets used in the transaction, Block Earner is partnering with custody platform Fireblocks. This partnership aims to provide a reliable and trustworthy means for investors to access the mortgage market using their crypto assets.
Australia’s decision sets a significant precedent for other countries considering similar solutions to address their housing affordability issues. As the world’s first Bitcoin-backed mortgage, this approval may influence regulatory bodies in other nations to rethink their stance on crypto lending.
Source: coincentral.com
