Author: Sam Town

Sam Town is a FinTech and Blockchain Journalist from Adelaide, Australia. I work with a broad spectrum of finance, technology, and blockchain businesses to deliver engaging, high-quality content across a range of topics. Areas of specialization include FinTech, blockchain, NeoBanks, crowdfunding, P2P lending, tax structuring & strategy, artificial intelligence, InsurTech, and finance IoT applications.

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Cryptocurrencies Cryptocurrency Tax Investing Real Estate

Australian SMSFs Turn Away from Cryptocurrency in Favor of Property Market

Australian self managed super funds have taken a step away from cryptocurrency investments over the last quarter, with property investments once again taking pole position as the number one most popular asset for Australian retirement planning.

The most recent bulletin on SMSF activity published by the ATO indicates that investors are more interested in both commercial and residential property, with an 11 percent increase in property assets held by self-managed super funds over the last 12 months. 

The ATO has only recently begun tracking the rate at which self managed super fund holders invest in cryptocurrency, adding the crypto label to the SMSF statistical report to the 2019 SMSF annual return. The data provided by the report, however, reveals an impressive amount of capital directed towards the cryptocurrency market by SMSF holders.

Australian SMSFs currently invest $137 million in the cryptocurrency market. The total amount of SMSF capital invested in crypto has fallen over the last quarter from $142 million, but represents a significant amount of confidence in the relatively volatile crypto market when compared to traditional asset classes.

Younger Generation Actively Investing in Cryptocurrency SMSFs

While cryptocurrency remains a popular asset for SMSFs, a return to property investments has seen residential property assets held by SMSFs increasing by 11 percent to $39 billion, with commercial property assets increasing by 9 percent to $73 billion.

Asset distribution data published by the ATO reveals that the SMSFs valued at less than $50,000 hold the greatest percentage of cryptocurrency investments, reflecting the relative popularity of cryptocurrency investments with younger investors and SMSF holders.

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Australia Crypto News Power Ledger

Aussie Blockchain Platform Power Ledger Scores US Deal with American Electricity Wholesaler

Power Ledger, one of the most successful Australia-based blockchain ventures to emerge from the 2017 ICO gold rush, has successfully completed a trial with US wholesale electricity provider American PowerNet.

The Australian blockchain venture, which focuses on blockchain-enabled peer-to-peer energy trading between consumers, has hinted toward multiple future projects with American PowerNet subsequent to lengthy trials in which the US electricity provider tested the capabilities of Power Ledger technology.

The trial, executed in the United States, was the first implementation of Power Ledgers peer-to-peer energy trading technology in the United States, but isn’t the first case in which the Perth-based platform has deployed overseas — Power Ledger technology is already in use in France, Japan, and India.

Power Ledger’s trial partnership with American PowerNet saw the US-based wholesaler deploy Power Ledger’s xGrid platform, allowing American PowerNet to trade solar power generated by the organization with a series of other commercial participants.

Power Ledger Expands Worldwide

The technology deployed by Power Ledger integrated existing distribution systems and assets, and was facilitated through PGM Interconnection — the largest wholesale market in the United States. At the end of the trial, PowerLedger technology allowed participants to purchase solar energy at a 5 percent discount on normal rates.

The success of the trial has seen American PowerNet enter into a two-year commercial agreement with Power Ledger, allowing the US party to continue using the xGrid solution. In statements released to Ledger Insights, Co-Founder and Executive Chairman of Power Ledger Dr Jemma Green highlighted the viability of the Power Ledger solution in international markets.

 “Our technology is proving to be compatible with existing large-scale electricity infrastructure like the PJM in the U.S. and the National Electricity Network in Australia. This places Power Ledger in a powerful position in the market as a network-ready technology.”

Recently, Power Ledger has engaged in collaboration with Perth-based developer OP properties to develop the first completely carbon-neutral apartment complex in Australia, allowing residents to access developer-funded rooftop solar panels and local battery storage.

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Australia Crypto News Jobs

Blockchain, Crypto, IT Jobs in Demand as Gov Directs $800 million Toward Digital Tech

Demand for skilled IT workers in the blockchain, crypto, and tech sectors has increased dramatically ahead of the Australian Government’s commitment to direct $800 million toward digital technologies as part of a detailed coronavirus economy recovery plan.

The Federal Government announced the new tech spending initiative earlier this month, highlighting the importance of helping Australian businesses recover from the economic impact of the Coronavirus pandemic. 

Data published by the Australian Computer Society indicates that Seek, one of Australia’s most popular online job platforms, has revealed a four percent month-to-month increase in the number of tech and ICT jobs advertised. Developers, business analysts, and helpdesk works are the most in demand.

Statements released to ACS by Melbourne-based crypto exchange BTC markets demonstrate that the Australian blockchain and cryptocurrency ecosystem is thriving, with crypto ventures taking on new staff rapidly. Speaking to ACS Information Age, BTC Markets CEO Caroline Bower noted that the Australian crypto exchange’s team had expanded dramatically.

“We’ve directly hired four software engineers plus a project manager for our development team during COVID lockdown. We’re still looking to make additional hires”

Morrison Government Directs Millions Toward Blockchain Development 

The Australian Government’s investment in the tech sector is set to be established in the 2020 budget, with the Morrison Administration setting aside over $256 million for a digital identity solution designed to streamline interaction with Australian Government services.

The quarter-billion dollar initiative is closely linked to recent recruitment executed by the Australian Government for the new blockchain roadmap, which has seen two working groups developed in order to develop blockchain-based solutions for credentialing and identity management in the public sector. 

In addition to the large-scale identity management project, the new budget will set aside $6.9 million specifically for blockchain projects aimed at minimizing business compliance costs.

Government announcements regarding the budget have highlighted economic recovery through technological agility, focusing on minimizing administrative friction. 

“The Plan supports Australia’s economic recovery by removing out-dated regulatory barriers, boosting the capability of small businesses and backs the uptake of technology across the economy”

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Australia Crypto News Cryptocurrency Law

Aussie Cruise Ship to Become World’s First Crypto “Seasteading” Hub in International Waters

Former P&O Cruises Australia cruise ship the Pacific Dawn is set to take on a new role in the post-COVID cruise economy — by becoming the world’s first floating “seasteading” community specifically for cryptocurrency, blockchain, and decentralized startups and entrepreneurs.

The Pacific Dawn, formerly a flagship cruise liner owned by the Australian arm of international cruise industry giant P&O, will be acquired by a company called Ocean Builders. The deal between P&O Cruises Australia and Ocean Builders will see the Pacific Dawn, built in 1991, anchored in the Gulf of Panama to become a “floating, off-grid home” for digital entrepreneurs.

The sale of the cruise ship, driven by economic fallout caused by shrinking cruise industry profits, is set to finalize on November 4 in the Mediterannean. The Pacific Dawn will be renamed as the “Satoshi.”

Chad Elwartowski, the COO of Ocean Builders, highlighted the importance of technological experimentation and development to the purchase of the Pacific Dawn in statements released to Maritime Executive:

“We look forward to creating a hub for technology and innovation here in Panama. Our goal is to figure out how to live sustainably on the sea and chart new waters in this new frontier.”

Elwartoski has experimented with “seasteading” before, recently capturing the attention of the Thai Navy for establishing an offshore “seasteading” home in the Andaman Sea off the coast of Thailand.

The core goal of the project, states Elwartowskiu, is to create an international offshore hub for digital entrepreneurs, cryptocurrency ventures, digital nomads, and startups that want to test innovative new technological solutions in a controlled environment. 

Crypto Cruise Ship Sets Sail

The Ocean Builders project has been highlighted by the company as the “Crypto Cruise Ship,” and will make cabins available for purchase via auction starting from November 5, 2020. The first auctions will see the deck 10 staterooms of the vessel auctioned in a similar fashion to a condo, allowing buyers to take full ownership over a cabin. While buyers will own the rights to the staterooms they purchase, they will be required to pay a monthly fee to cover the operational expenses of the vessel.

The first sale of cabins in the renamed “Satoshi” will see 200 cabins auctioned with prices starting at $25,000 USD. A total of 777 cabins will be made available in the crypto cruise ship, with an anticipated total occupancy of 2,020 passengers.

Ocean Builders has announced that residents will be able to use cryptocurrency to pay for services and amenities aboard the ship, which include bars, lounges, casinos, restaurants, and gyms. The Pacific Dawn — soon to the the Satoshi — will set sail from the Mediterranean and will anchor in the Gulf of Panama, with a 30 minute ferry ride taking residents to and from Panama City.

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Australia Crypto News Cryptocurrencies Scams

Dick Smith Entangled in Another Crypto Scam Advertised on Major News Platforms

Australian entrepreneur Dick Smith has once again been targeted by cryptocurrency scammers using his reputation and likeness to push fraudulent crypto investment offers — this time, though advertisements published on major news platform The Guardian Australia.

Advertisements published via The Guardian’s Australia-specific news outlet alongside additional ads published on aviation website pprune.org have used Smith’s image and likeness in order to defraud would-be cryptocurrency investors through scam offers and unregistered investment schemes.

Crypto scammers using Smith’s image to push fraudulent investment offers isn’t new — the entrepreneur’s likeness has been used to promote scams to often that the Australian adventurer and business icon has formally distanced himself from cryptocurrency investing via Twitter.

Other Australian celebrities impersonated by crypto scammers include David ‘Kochie’ Koch, Michael Rowland, Karl Stefanovic and Virginia Trioli.

Dick Smith Legal Team Strikes Out at The Guardian

The fraudulent advertisements published via The Guardian linked readers to fake news articles that presented fake quotes by Smith, stating that the entrepreneur invested in cryptocurrencies. The Australian reports that Smith’s legal team has approached The Guardian, instructing the news platform to remove the ads and ensure that any offending advertisements are not published by The Guardian in future. 

“Mr Smith is determined to ensure the cryptocurrency scam promptly comes to a permanent end … While we acknowledge that The Guardian Australia does take the fraudulent advertisements down once notified, that does not prevent your Australian readers from falling victim to this prolific cryptocurrency scam”

The fraudulent advertisements are associated with criminal syndicates, and typically present images of Smith’s face alongside Australian flags or associated imagery with the text “D. Smith scared Australian banks, he told how to make money easy (sic)” or “get rich in a few days; this method has helped thousands of Australians”.

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Australia Bitcoin Cryptocurrencies Scams

Anglicare Sydney Held to Crypto Ransom Over Data Hack

Australian not-for-profit Anglicare Sydney has confirmed that it is currently being held ransom for cryptocurrency due to a large data leak caused by hackers that have stolen a significant amount of sensitive personal information from their computer systems.

Anglicare Sydney manages records for a wide range of healthcare services, including adoption, foster care, counselling, and mental health services. The not-for-profit has announced that over 17 gigabytes of data was hacked and sent to a remote location on August 31 in a malicious cyber track.

The hack represents a significant data loss, as Anglicare Sydney is currently contracted by the NSW Department of Family and Community Services to provide both adoption services and foster care, as well as a series of programs designed to assist vulnerable families and at-risk youth.

In a statement released regarding the hack, Anglicare Sydney noted that the main system relating to Anglicare Sydney’s Out of Home Care Program, which includes the foster care program, was not impacted. 

Signals Directorate Confirms Crypto Ransom Demands

The hack is currently under active investigation by the NSW police, who have stated that they are conducting inquiries. Notably the Australian Signals Directorate — Australian government’s intelligence, cyber warfare and information security agency — confirmed that it is currently working alongside Anglicare Sydney to investigate the hack, highlighting the fact that the hackers are demanding cryptocurrency as a payment method.

“Ransomware can cripple organisations that rely on computer systems to function by encrypting all connected electronic devices, folders and files and rendering systems inaccessible. Cybercriminals will then demand a ransom in return for the decryption keys, often in the form of untraceable cryptocurrencies such as Bitcoin.”

Anglicare Sydney has announced that it will refuse to pay a ransom or engage with cyber criminals.

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Australia Blockchain Cryptocurrencies Regulation

Reserve Bank Rejects Aussie Central Bank Cryptocurrency, Unsure of Facebook Libra Approval

While other countries around the world are flirting with the idea of issuing a central bank backed crypto currency, the Reserve Bank of Australia says no — citing a lack of compelling policy.

Countries such as Sweden, Canada, and China are all actively investigating the potential benefits of a central bank issued digital currency, but the RBA isn’t swayed by the use cases of blockchain technology. In a payments paper issued on Thursday, the RAB expressed doubts regarding the future of stablecoins, along with cryptocurrencies such as Facebook’s Libra project.

The RBA has stated that it remains to be seen whether or not Facebook’s Libra cryptocurrency will gain regulatory approval and be allowed to operate in Australia. Other assessments in the paper highlight the slow rate at which cash payments are declining compared to relatively cashless countries such as Sweden.

RBA Won’t Eliminate Cash — Yet

The widespread adoption of real-time payment solutions such as the New Payments Platform place Australia ahead of the curve with regards to safe, low cost, and convenient payment platforms from traditional banks, according to the RBA.

“The (RBA’s) view is that there is currently no strong public policy case to introduce a CBDC (Central Bank Digital Currency) for retail use,” 

The RBA isn’t planning on ceasing the issuance of banknotes despite the ongoing push to minimize the use of cash in Australia, stating that it will continue to provide “reasonable access” to banknotes “for as long as Australians wish to keep using them.”

While the RBA is opposed to the concept of a central bank issued cryptocurrency, other countries are not so recalcitrant. Sweden’s Riksbank has floated the idea of an e-Krona several times over the last three years, citing the country’s rapid adoption of cashless alternatives.

The Bank of Canada, however, has taken further steps toward a central bank issued crypto, with the Bank of Canada announcing in February that it will develop the capacity to issue a retail central bank digital currency as soon as it becomes desirable.

Categories
Australia Crypto Debit Cards Cryptocurrencies

Revolut Launches Aussie Crypto Exchange, Crypto Roundup for Australian Users

Digital banking app Revolut has announced the impending launch of a larger suite of crypto functionality to the Australian market ahead of pending approval for an Australian financial services license, providing Aussies with exposure to a range of digital assets in addition to a variety of crypto tools and features.

The recent launch of Revolut in Australia saw the platform launch a new neobank in the country, operating as an Australian equivalent of the digital bank’s US and EU services. The latest addition to the services Revolut provides will allow users to access a broader range of features, such as deposit accounts and personal lending. 

Edward Cooper, Revolut’s Head of crypto division, stated in comments released to the Australian that greater volatility in cryptocurrencies is driving investors towards the new asset class as an attractive alternative.

“The volatility is making it more attractive for people … It is making people think what other assets are a place where I can put some money and see if it can perform better under these unusual circumstances.”

Revolut Aims for 1 Million Australian Users

Revolut has launched in Australia into direct competition with Australian neobanks such as Volt, Xinja, and 86 400, which offer home loan, banking, and deposit products. Revolut’s new crypto features include innovative options such as the Roundup feature, which allows users to round up everyday payments to the nearest dollar and then invest the excess into cryptocurrency.

Revolut Australia chief executive Matt Baxby highlighted the ease with which Australians can use the Revolut app to buy cryptocurrencies, noting that the difficulty involved in getting started can turn some investors away.

“Buying and selling cryptocurrencies can be incredibly complicated and confusing for the uninitiated, which means many Australians don’t know how to access cryptocurrency as an investment option”

Baxby, formerly operating as a chief financial officer at Bank of Queensland, stated that Revolut aims to capture 1 million new Australian users within the next year. 

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Australia Crypto Debit Cards Scams

ASX-Listed Fintech Giant to Buy Australian Wirecard Assets After Crypto Card Platform Collapse

A US-based fintech enterprise listed on the ASX has announced a bid to buy Wirecard’s Australian and New Zealand businesses subsequent to the collapse of the international cryptocurrency debit card company in June this year.

Change Financial, a US-based fintech company, has announced that it recently entered into a binding agreement that will see it acquire all of the business assets of Wirecard in both Australia and New Zealand for a total cost of $7.8 million.

Wirecard, which promised worldwide crypto-powered debit cards, collapsed in June after revealing that €1.9 billion in company assets did not exist. The payments company, originally based in Germany, was operating as a major crypto debit card issuer, until financial strife revealed poor bookkeeping and fictional assets.

Controversy regarding Wirecard began on June 18, when Ernst & Young auditors reported that more than $2 billion that was supposed to be held by Wirecard in Philippines-based accounts did not exist. The CEO of Wirecard, Markus Braun, was subsequently arrested on August 23, with Wirecard filing for insolvency on June 25.

Ernst & Young global chairman Carmine Di Sibio released a statement via a letter distributed to senior executives this week, expressing regret that Wirecard’s fraud was not identified sooner.

“Many people believe that the fraud at Wirecard should have been detected earlier and we fully understand that. Even though we were successful in uncovering the fraud, we regret that it was not uncovered sooner.”

Change Cashes in on Wirecard Assets

Change Financial, however, is cashing in on the controversy surrounding the now-defunct card provider, purchasing all of Wirecard’s business assets in both Australia and New Zealand for less than $8 million. 

The strategic acquisition includes a blue chip client base that includes Australia’s Big 4 Banks, an estimated $15.4 million in revenue for the 2020 financial year, and partnerships with Visa, Amex, UnionPay, and Diners. 

Change has stated that it aims to upgrade and expand upon Wirecard’s existing platform in order to expand into the US market over the next 12 months. 

Categories
Australia Blockchain Power Ledger

Australian Blockchain Energy Platform Dives into Property Market

Power Ledger, one of Australia’s most successful blockchain ventures, has announced that it will partner with a Western Australian building company in order to create another real-world implementation of the platform’s unique blockchain-enabled energy market.

Announced on September 14, the new initiative will see Power Ledger partner with Western Australian property developer OP Properties in order to create a new blockchain-enabled apartment complex that integrates the energy tokenization technology of the Power Ledger platform.

Residents living in the soon-to-be developed apartment complex will access savings of up to 50 percent on their annual strata levies due to Power Ledger blockchain technology, saving significant amounts of money on the cost of maintaining common areas.

The development will see 39 new apartments built near the center of Fremantle, with building roofs incorporating a 75kW solar rooftop PV and 670kWh on-site battery storage. The development, apart from integrating energy saving blockchain technology, will also draw from 100 percent green energy sourced from local energy retailer Change Energy.

Residents Cash In on Blockchain Energy Market

The biggest benefit provided to individuals living in the new development is the ability to sell excess solar electricity generated through the solar panel installation. Through Power Ledger, residents are able to sell excess energy in the form of tokenized energy assets, which also allows them to buy back electricity at predetermined prices from the on site battery at an agreed price.

Power Ledger co-founder and Executive Chairman Dr Jemma Green highlighted the unique nature of the new development in statements released to Smart Energy:

“This is the first time we’ve seen such a progressive model being implemented in an apartment building. The development shows what’s possible in residential energy trading when developers commit to renewable energy as part of their early planning.”

Power Ledger is notable for capturing over $34 million in funding during an October 2017 initial coin offering, making it one of the most successful Australian ICOs and blockchain ventures to date.