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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Australia Blockchain Trading

ASX May Push Ahead with Blockchain CHESS Replacement Sooner Than Expected Under Market Pressure

The Australian Securities Exchange has announced that an “overwhelming majority” of market participants are prepared to meet the revised start date of April 2022 for the launch of the new blockchain-based system that will replace CHESS, the current system used to settle share transactions.

Data released by the ASX indicates that over 90 percent of CHESS users are ready to meet the proposed date of April 2022, with ASX experts now reviewing consultation feedback. 

The launch of the blockchain-based replacement system, which was delayed in June 2020, will rely on heavy industry-wide testing over Q4 2020 in order to ensure that it is able to meet market demand. The ASX has stated that it is currently working on assessing feedback provided by CHESS users in order to meet the new implementation timetable.

Feedback from current CHESS users received by the ASX  reveals that 88 of the 96 CHESS users have provided submissions detailing their readiness to adopt the new blockchain-based settlement system, with 91 percent stating that they are able to meet the April 2022 go-live date.

Blockchain Technology Beats Legacy Clearinghouse Systems 

CHESS is the underlying system that performs clearing, settlement, asset registration in the equity market and, at the time of launch 25 years ago, was a world-leading digital equity management platform. As the underlying system that performs critical tasks in Australian equity markets, the ASX has recognized blockchain technology as a highly effective solution that will “provide a broader range of benefits to a wider cross section of the market.”

While the ASX has not yet announced a final decision on the go-live date of the new system, ASX chief executive Dominic Stevens has stated that the blockchain-based CHESS replacement system has “taken on even greater significance” due to the need for “digitisation and straight-through processing” revealed by the ongoing COVID-19 pandemic.

“The CHESS replacement project has involved the most interaction ASX has ever undertaken with the market”

The launch of the blockchain-based CHESS solution will represent one of the largest strategic conquests for blockchain adoption, legitimizing blockchain and distributed ledger technology as a superior means of tracking, registering, clearing, and settling assets in equity markets.

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Australia Crypto News Cryptocurrency Law

$600M Crypto Class Action Filed, Aussie Mining Billionaire Twiggy Forest Declares War on Google, Facebook

Sydney lawyer Andrew Hamilton’s $600 million class-action lawsuit targeting tech giants such as Google, Facebook, and Twitter has been filed in the Federal Court of New South Wales as Australian mining billionaire Twiggy Forrest announces a new alliance aimed at empowering the opponents of tech oligarchs. 

Hamilton, representing Sydney-based law firm JPB Liberty, announced that the cryptocurrency ad ban lawsuit was ready to file earlier this week, with the suit already capturing over $600 million USD in claims from litigants.

The suit was filed with a statement of claims exceeding 50 pages, and targets a slew of international social media platforms such as Twitter, Facebook, Google, and YouTube — mirroring legal action taken against YouTube by cryptocurrency exchange Binance. 

Twiggy Declares War on Facebook and Google

Andrew Hamilton isn’t the only Australian taking tech giants to task — Aussie mining magnate Andwrew “Twiggy” Forrest has announced the launch of a new “Global Tech Impact Network” aimed at promoting and supporting the work of the most vocal critics of Google and Facebook.

Forrest will provide $20 million in funding in order to “tackle the lawless, empower workers, and reimagine technology,” operating from some of the most prestigious universities in the world. 

Funded directly by the Forescue Metals Founder’s “Minderoo Foundation” philanthropic arm, the initiative is focused on holding both Facebook and Google accountable for their actions subsequent to a large-scale cryptocurrency scam that saw his likeness used to defraud Aussies of over $3 million in cryptocurrency.

“We need a massive uptick in education and governance to wrestle with the very real harms caused by the tech sector,”

At the time of the fraud, Forrest “reached on an executive level” to both Google and Facebook to no avail — and appears to now be taking more proactive steps by launching an international cooperative effort out of Cambridge, Oxford, New York, and Western Australian to take proactive steps to eliminate fraud.

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Australia Cardano Crypto News

Aussie Blockchain Dev Prepares to Launch Cardano Payments Across 500k Online Stores

An Australian blockchain developer is working on a new Shopify integration that will allow ADA holders to pay with Cardano’s native token across almost half a million online stores around the world. 

Created by Australian blockchain developer Jeronimo Backes, the new “Cardano e-commerce integration project” will allow online shoppers to use ADA tokens to pay for a broad spectrum of goods and services via ecommerce payment platform Shopify.

Cardano is a blockchain project driven by an academic development protocol, focused on peer review and collaboration.

ADA holds a strong position in the top 10 cryptocurrencies by market cap, but currently lacks extensive adoption as a means of purchasing goods and services — outside of a number of gaming skin markets and VR imaging platforms, Cardano’s ADA token is largely used as a means of international remittance. 

Cardano Stake Pool Backs Ecommerce ADA Integration Project

Backes’ new Shopify integration project would bring ADA payments to millions of online shoppers around the world — launched in 2004. Shopify has processed over 40 billion worth of sales internationally, and holds roughly 20 percent of the global ecommerce market share. 

The Australia-based developer’s efforts to create a functional ecommerce application for ADA is sponsored by the SHOP Cardano stake pool, who are funding the project with the goal of the goal of building Cardano integrations with ecommerce.

SHOP’s missions statement highlights the open-source nature of the Cardano e-commerce integration project, noting that the rollout of smart contracts on Cardano will allow for the creation of more complex ecommerce payment models such as subscriptions:

“Once smart contracts become available, we’ll introduce support for subscriptions and recurring payments in ADA and native tokens that run on the Cardano blockchain.”

The user-focused nature of the new Cardano project reflects greater changes in the Cardano ecosystem, with Cardano taking the first step towards the Voltaire phase of development through “Project Catalyst,” which will see the Cardano development ecosystem transformed into an entirely community-led effort.  

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Crypto News Cryptocurrencies Cryptocurrency Law Regulation

$300 Billion Class Action Lawsuit Against Social Media Giants “Ready to File” as Signups Draw to Close

An impending class-action lawsuit that could see international social media giants such as Facebook, Google, and Twitter sued for over $300 billion is “ready to file,” with signups for claimants closing next week.

Announced in early June 2020, the class action lawsuit is spearheaded by Andrew Hamilton, the CEO of Sydney-based legal firm JPB Liberty. The class action lawsuit is focused on holding various social media platforms accountable for cryptocurrency advertising bans executed by throughout 2018.

The suit has already captured over $600 million USD in claims — nearly $875 million AUD — with multiple litigants. The case has already been placed before a senior barrister for review, and accuses a series of social media platforms of acting in a cartel-like manner in order to collaboratively crush the developing digital currency industry in 2018.

Hamilton, in a conversation with crypto news media, stated that he is prepared to file proceedings for the case within a 48 hour period — noting that signups for claimants are scheduled to close on August 21.

“This is a very big threat to Facebook and Google strategically, because, instead of having startups that have to fundraise all the way through and end up getting bought by Facebook or Google or someone before they become a competitive threat,”

Google, Facebook Banned Crypto Ads to “Eliminate Competition”

Initial coin offerings and other digital currency based startups, according to Hamilton, are a significant threat to the status quo of the tech tech industry. Hamilton highlights the cumbersome, slow moving nature of fundraising in the tech industry, stating that ICO’s “front-loaded” the investment process, allowing tech startups to compete on equal footing with major tech companies.

The suit focuses on the “hypocrisy” of major tech platforms such as Facebook developing and launching projects such as the Libra stablecoin, while simultaneously banning all digital currency competitors. Everyone who was in the nascent web 3.0 space at the time and planning on competing with Google or Facebook, states Hamilton, was crushed.

The suit, if successful, will see 70 percent of any settlement distributed to litigants, with 30 percent directed toward the suits funders.

Categories
Australia Binance Crypto Exchange

Binance Launches Direct AUD PAYID Deposits in Australia

International cryptocurrency exchange Binance has announced the integration of new AUD support for Australian users, allowing Aussie crypto traders to deposit AUD directly to the trading platform for the first time.

The new AUD deposit functionality, announced on Friday, will allow Australian traders to load Australian dollars to their Binance accounts through the PayID system supported by over 100 Australian banks. AUD support provides Australian traders with the ability to directly fund their accounts, a process that previously required several steps. 

Prior to the launch of Binance AUD support Aussie Binance traders were forced to purchase Bitcoin or other cryptocurrencies through platforms such as Australia-based Easy Crypto, which provide simple AUD to crypto buys and sells, then send purchased cryptocurrency to a Binance wallet.

PayID executes fiat currency transfers nearly instantly, significantly cutting down the wait time for traders aiming to buy into the crypto market. 

Aussie Traders Slow to Adopt New Crypto Exchange Options

The launch of Binance’s new AUD PayID deposit system was announced during the launch of the exchange platform’s “Full Fiat” Australian exchange late last month, but was only recently made available to all users. 

Whether or not Australian crypto users — who primarily purchase cryptocurrency via Australia-based platforms such as Coinjar and Easy Crypto — have shifted to the international exchange platform is not yet clear. Binance CEO Changpeng Zhao, in statements released to crypto news media platforms, clarified that Binance does not disclose user data.

Categories
Australia Crypto Debit Cards Trading

Revolut Officially Fully Launches in Australia as Waitlist Opens

Revolut is now officially fully available in Australia, allowing all Aussies to now download the cryptocurrency and stock trading app, create accounts and verify without joining a lengthy waiting list.

The UK-based fintech app executed a soft launch in Australia mid-2019, allowing a limited number of Australian users to create an account. The lengthy beta process, which saw the waiting list extend to over 30,000 users, is now complete, providing new users with the ability to create an account.

The Revolut app provides neobank financial services to over 12 million users worldwide, delivering a range of features that allow users to send and convert between 29 different currencies or withdraw cash from anywhere via a prepaid debit card that allows ATM withdrawals in 120 countries worldwide.

The most notable feature of the Revolut app is the cryptocurrency functionality it provides. Unlike Coinbase, or Australia-based cryptocurrency brokerage platform CoinJar, Revolut doesn’t actually allow users to send cryptocurrency out of the app itself — but users are able to invest.

Crypto Functionality Not Yet Available in Australia

Through the international version of the Revolut app, it’s possible to purchase and hold Bitcoin, Litecoin, XRP, Ethereum, and Bitcoin cash. Unlike Coinjar and other crypto exchange platforms, you aren’t provided with a wallet address for these cryptocurrencies — so it’s not possible to purchase them and send them elsewhere — but it is possible to buy and capitalize on price changes.

Australian Revolut users aren’t able to purchase cryptocurrency via the Revolut app just yet, however — the Australian release only provides money transfer and prepaid debit card services, including the issuance of Revolut’s premium metal debit card — the first of its kind available in Australia.

Revolut has stated that it will allow Australian users to access commission-free stock trading via the Revolut app alongside the ability to buy and hold cryptocurrency at a later date.

Categories
Crypto News

Crypto Criminals Targeted by International AFP Crackdown, Aussie Police Officers go Global

The Australian Federal Police is set to deploy officers around the world in a new international crackdown that will see the AFP target global intellectual property thieves, hackers, and cryptocurrency users.

The new plan will distribute AFP offices throughout Africa, the United States, and Europe in pursuit of criminals and scammers otherwise out of the reach of Australian law enforcement. Australian police officers will possess the authority to knock on doors, arrest criminals, and seize the assets of criminals from Eastern Europe, to Nigeria, and Brazil — including cryptocurrency assets.

The countries targeted by the AFP in what AFP Commissioner Reece Kershaw described as an “offshore punch” are close to cybercrime hubs, from which phishing, malware, and romance fraud operations defraud Australians. 

New powers provided to Australian police officers in a $1.6 billion cyber security strategy that the Morrison Government plans to legislate by the end of the year will see the AFP receive support from the Australian Signals Directorate and other agencies, such as ASIO.

Global Police Force Targets Crypto 

Cryptocurrency is expected to be a primary target of the international AFP crackdown, with over $2.5 billion AUD lost to international online scams in the last decade — much of it siphoned away through major cryptocurrencies such as Bitcoin. 

ACCC chairman Rod Sims has warned Australians against new COVID-19 focused scams aimed at defrauding Australian superannuation holders of their retirement savings. 

The increase in international scammers targeting Australians occurs alongside an increase in the distribution of malicious remote access tools that provide hackers with the ability to review documents and media on target devices or record keystrokes.

By recording keystrokes or data on target devices, hackers can potentially gain access to cryptocurrency exchange accounts or private keys. The AFP, however, is certain that the new international policing effort will minimize the impact of scams — crypto or otherwise — on the Australian public.

“The criminal syndicates hiding behind keyboards are targeting the nest eggs of hardworking Australians, they are holding our businesses to ransom, robbing our universities of their intellectual property, and planning terrorist attacks …  The AFP will respond to the cyber threat with renewed focus and enhanced capabilities to cause maximum damage to the criminal environment,”

Categories
Australia Cryptocurrency Law Regulation

Hand Over Your Private Keys: $1.6bn Cyber Strategy To Target Australians, Crypto Holders

It’s no secret that Australians are subject to ever-increasing levels of government surveillance. New capacities introduced in the new $1.6 billion Morrison government cybersecurity push, however, could see Aussie crypto investors forced to hand over passwords to all devices — including hardware wallets.

A $1.664 billion increase in federal spending confirmed by Peter Dutton designed to identify and disrupt online criminal activity will provide the Australian Federal Police, the Australian Criminal Intelligence Commission, and the Australian Signals Directorate to, for the first time in Australian history, target Australian citizens. 

Details of the new powers provided to law enforcement organizations are not detailed in the new strategy, outlining only that the Australian government will now possess sufficient capability to defeat anonymising technology.

“Enforcement agencies (will) have appropriate legislative powers and technical capabilities to deter, disrupt and defeat the criminal exploitation of anonymising technology and the dark web”

The technical capabilities of the Australian government and Australian Signals Directorate have captured the attention free speech advocates across the country and remained a source of controversy since the mid-2019 raid of News Corp journalist Annika Smethurt’s home in 2019 over a news report suggesting the ASD was seeking the capability to spy on Australian citizens.

AFP Yet to Force Tech Companies to Give Access — Gain Backdoors into Major Platforms

Last week’s parliamentary inquiry into the actions of Australian law enforcement agencies revealed that neither ASIO or the Australian Federal Police have used new anti-encryption laws provided to them via 2018 anti-encryption legislation that allows the government to demand access to encrypted devices — with the threat of jail for non-compliance — to compel tech companies into revealing user data.

The AFP is currently able to demand backdoor access to virtually any tech platform operating in Australia — including cryptocurrency exchanges. AFP’s digital surveillance section Superintendent Robert Nelson noted that many platforms build specific backdoors that allow them to share data on-demand with Australian law enforcement.

“In other instances they’ve actually built a capability or modified parts of their system to be able to facilitate that voluntary assistance request.”

During the parliamentary hearing AFP commissioner Reece Kershaw stated that the powers provided to the AFP allowed the law enforcement agency to overcome technical challenges present in cases where the encryption of data and the use of  cryptocurrency to conceal payments made it difficult to capture evidence.

The new powers set to be provided to Australian law enforcement will further enhance the capability of the Australian Government to demand the passwords and private keys of users, regardless of how or why data is encrypted — potentially forcing cryptocurrency holders to divulge the private keys to their devices.

Categories
Australia Crypto Exchange Crypto News Scams

Australian Crypto Exchange ACX.io Under Scrutiny from Crypto Community as Possible Exit Scam

ACX, boasted as Australia’s “most liquid Bitcoin exchange,” has come under fire multiple times this year from concerned cryptocurrency traders and platform users who report that they are unable to withdraw funds.

Discussions on popular media platform Reddit concerning the trading platform note that many users claim to be unable to withdraw cryptocurrency funds, citing empty public hot wallet addresses and complaints filed with the Australian Financial Complaints Authority (AFCA).

ACX.io was ejected from the Blockchain Australia industry body subsequent to an internal disciplinary process. The trading platform, supported at launch by Blockchain Global Limited (BGL), is currently the target of a group of cryptocurrency users that plan to file a class-action lawsuit against key stakeholders of ACX.io, including Sam Lee, Allan Guo, and Wenyong Huang. 

Concerns of ACX Exit Scam Increase

Traders and cryptocurrency investors active on the ACX trading platform have remained vocal on social media throughout 2020, claiming that the Melbourne ACX office is “completely deserted.”

In January 2020, the exchange was subject to an “audit” announced on the website, which stated that withdrawals were “temporarily disabled”

“Dear ACX customers we are going through the audit process with ACX hot and cold wallet. During this time, the deposit and withdrawal functions will be temporarily disabled.”

Blockchain Global Will Pay for Legal Action on Behalf of Customers

In March 2020, Blockchain Global published an announcement announcing that it had received multiple complaints regarding the ACX platform, noting that ACX was launched with the assistance of accelerator funding during an incubation period, which ended in December 2017. 

All wallet management thereafter, according to the Blockchain Global Statement, was handled by a “Blockchain Tech PTY LTD” a company established in March 2017 owned by “Blockchain Jet PTY LTD.” Blockchain Global, states the announcement, has had no access to customer funds or exchange operations, and had not received any shareholder updates or management visibility up to the date of the announcement.

Interestingly, Blockchain Global stated in the same announcement that if ACX were unable to deliver a timeline in which all withdrawal requests could be met or a litigation process to reveal contracts between specific stakeholders could not deliver transparency, Blockchain Global itself would fund legal fees for the liquidation of all related entities in order to return customer funds. 

Categories
Australia Bitcoin Scams

Netwalker Crypto Ransomware Threat Widespread in Australia

New data published by international cybersecurity platform McAfee reveals that the highly prolific Netwalker ransomware, which encrypts the files of victims and demands ransom in Bitcoin, is highly active in Australia.

A report published by McAfee indicates that the activity of the advanced ransomware threat has increased over Q2 2020, developing a complex ecosystem of affiliates and gangs that are earning millions. 

McAfee data reveals the global prevalence of the NetWalker ransomware.

The Netwalker threat was first identified in August 2019, with several variants of the original ransomware tool subsequently appearing around the world. Microsoft’s Threat Intelligence Protection platform isused a warning in April 2020 that Netwalker was used to attack a variety of healthcare and critical service providers around the world.

Interestingly, Netwalker provides victims with access to human operators in order to negotiate ransoms and guide affected individuals through the decryption process after paying their ransom. Groups using the Netwalker ransomware also threaten to exfiltrate sensitive victim data and publish it online if individuals do not pay ransom fees in Bitcoin. 

Aussie Aged Care Providers Hit By Ransomware Data Breach

Netwalker isn’t the only ransomware threat to hit Australian in 2020 —ASX listed aged care provider lost a significant amount of data to overseas-based ransomware platform Maze earlier this week, with the company announcing that it had suffered a breach that saw the hackers copy “some data from (the) IT system and release certain personal data publicly.”

The attack prompted a response from the ACSC on Sunday, highlighting the importance of remaining vigilant against ransomware threats — especially in the aged care and healthcare sectors:

“The Australian Cyber Security Centre (ACSC) is aware of recent ransomware campaigns targeting the aged care and healthcare sectors. Cyber criminals view the aged care and healthcare sectors as lucrative targets for ransomware attacks.”