On July 18th, according to Cointelegraph, as Australian housing prices continue to outperform income growth, a company has launched Bitcoin mortgage loans, providing a new way for cryptocurrency holders to enter the real estate market without selling assets.
On Wednesday of this week, Block Earner launched Australia's first Bitcoin collateralized housing loan. Previously, the company persisted for over two years in court battles with regulatory agencies. The launch of this product benefited from a federal court ruling in April this year, which determined that Block Earner's cryptocurrency lending product does not fall under the category of "financial products" under the Companies Act.
This ruling means that the company does not need to hold a financial services license to accept Bitcoin as collateral in mortgages.
In this product, the borrower's encrypted assets are managed by the custody platform Fireblocks. Bitcoin will serve as collateral to provide guarantees for cash loans up to 50% of the property's value, supplemented by standard mortgage methods to complete the financing structure.
