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 Crypto Exchange Regulation

Australian Crypto Exchange Ecosystem Explodes, Exceeds 312 Registered Exchanges

The Australian crypto exchange market has experienced a significant growth surge in the last year, overcoming sluggish crypto price movements and global economic strife to add over 70 new crypto exchanges to the ranks of Aussie trading platforms.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) confirmed earlier this year that over 312 cryptocurrency exchanges are now registered in Australia, a significant increase over the 246 exchanges active in February 2019.

AUSTRAC, which functions as Australia’s financial intelligence agency and is responsible for Anti-Money Laundering regulation, has regulated cryptocurrency exchange platforms in order to minimize the risk of criminal behavior such as terrorism financing, cybercrime, and money laundering.

Any exchange platform that intends to launch a crypto trading platform in Australia must first formally register with AUSTRAC and provide evidence that the platform will implement anti-money laundering and counter-terrorism financing controls.

AUSTRAC takes cryptocurrency exchange regulation seriously — to date, the regulatory body has canceled the registration of multiple platforms that include several cryptocurrency exchanges and a number of cryptocurrency ATM machine businesses.

Notably, AUSTRAC has revoked the licenses of AUSCOIN ATM and MK Buy & Sell, platforms associated with Lamborghini-driving Bitcoin trader Sam Karagiozis.

A joint raid executed by AUSTRAC and the AFP saw properties linked to Karagiozis raided in 2019. Karagiozis, subsequently charged with drug-related offenses, is currently fighting for the return of assets confiscated during the raid.

Categories
Bitfinex Cryptocurrencies

Crypto Traders Shift Towards DEX Platforms as Trust in Centralized Exchanges Dwindles

The cryptocurrency market is home to thousands of cryptocurrency exchanges — most of them wholly centralized and prone to hacks, mishandling of client funds, and outright exit scams. 

While centralized exchanges such as Coinbase, Binance, and Bitfinex have dominated crypto market volumes over the last decade, the next generation of decentralized exchanges, or DEXs, are slowly winning over security-conscious traders and investors.

Cryptocurrency price and market capitalization platform CoinGecko released its Q2 2020 Quarterly Cryptocurrency Report on July 9, revealing insight into the latest trading habits of cryptocurrency investors — decentralized exchanges are gaining traction.

Centralized Exchanges Lose Volume as DEXs Gain

Data revealed in CoinGecko’s report indicates that spot volume on major centralized crypto exchanges such as Binance have decreased by $324 million, or 7 percent. Both Binance and Bitfinex, two of the largest centralized crypto exchanges, experienced a significant reduction on total spot trading volume in the first half of 2020.

The apparent reduction in spot trading volume on centralized exchanges, however, has been balanced by a significant increase in trading volume on decentralized exchange platforms.

Q2 2020 saw an increase of 56.1 percent in trading volume on DEX platforms, with decentralized exchanges such as Uniswap V1 experiencing an increase of 152.4 percent.

Bitfinex Embroiled in Court Case Over Mishandled Client Funds

The reduction in major centralized crypto exchange volume is driven, in part, by continuous hacks and mishandling of user capital. Earlier this week, a New York State appeals court ruled that the exchange must face claims that it hid the loss of commingled client and corporate funds.

Companies related to the Bitfinex exchange platform are accused of hiding over $800 million in both client and corporate funds.

Categories
Bitcoin Commodities Gold

Bitcoin Flirts With Price Surge as Gold Hits 9-Year High, Investors Hedge Against Inflation

The global economic impact of the COVID-19 pandemic stalled traditional markets and weighed down Bitcoin volume, contributing to months of price stagnation. With gold reaching values not seen in over a decade and investor capital flooding crypto markets, however, a BTC price surge could be just around the corner.

The financial consequences of the COVID-19 pandemic has seen governments and central banks around the world print billions in fiat currency in order to bolster economic activity — to date, the US Government has printed over $3 trillion USD, while the UK Government has executed a £100 billion quantitative easing plan.

While these measures are argued as a necessity in order to maintain economic stability, the issuance of new fiat currency inevitably presents the possibility of inflation. Large-scale quantitative easing efforts as executed by international governments throughout the first half of 2020 will have a profound impact on the global economy — a fact that cautious investors are aware of.

Inflation Fear Drives Capital to BTC Market

The threat of inflation presented by qualitative easing-induced inflation has catalyzed renewed interest in gold markets, driving the value of gold to a nine-year high of over $1,800 per ounce. Macro analyst Holger Holger Zschaepitz cites a decline in real inflation adjusted yields offered by US bonds, with investors shifting capital into gold as an inflation hedge.

While Bitcoin has yet to demonstrate a concrete return to a bullish trend, the shift toward assets that resist inflation has driven attention, once again, toward Bitcoin. 

Earlier this month Argentinian Bitcoin traders pushed over $1.4 million USD into the Bitcoin market, doubling trade volumes on a weekly basis ahead of an economic crisis in the country driven by political turbulence and inflation approaching 50 percent.

The ongoing stability of Bitcoin — which has not strayed from the $9,000 to $10,000 range for several months — is redefining the market perception of digital assets, strengthening the position of Bitcoin as a hedging asset among traditional finance investors and placing Bitcoin in a secure position to challenge the $10,000 ceiling.

Categories
Australia Bitcoin Cryptocurrencies Victoria

Australian Crypto Adoption Accelerates, Experts Predict $13k USD Bitcoin as COVID-19 Lockdown Returns

Millions of Australians are now unable to leave home due to the return of COVID-19 quarantine measures — but crypto markets remain open, amplifying cryptocurrency trade, investments, and real-world use cases.

Victoria Premier Daniel Andrews announced the first closure of Victorian state borders in over a century on Monday July 6th, heralding a return to stage 3 lockdown for an additional six weeks across the state. 

The COVID-19 pandemic and ensuing lockdowns have decimated share markets, rocked the Australian economy, and forced over 70 percent of Australian businesses to accept support measures facilitated by the Australian government such as wage subsidies or deferred loan repayments.

Bloomberg Analysts Predict $13,000 Bitcoin

The fiat economy is struggling to recover from the ongoing international coronavirus lockdown. The digital asset economy, however, is showing strong signs of life — Bloomberg Intelligence’s July 2020 Crypto Outlook reveals a positive outlook on mid-year digital asset markets, citing favorable macroeconomic conditions and record-breaking inflows of institutional capital.

Bitcoin is in high demand, with Bloomberg analysts predicting a breakout pushing BTC prices to a $13,000 USD ceiling — a prediction mirrored by Australian cryptocurrency investors and traders.

Early March lockdown announcements around the world saw investors flood crypto markets with buy orders, with major exchanges such as Binance experiencing a 500% increase in deposits that exceeded $1.3 billion in just 48 hours.

Stimulus Payments Stimulate Crypto Market

Stimulus payments provided to Australians and US citizens by their respective governments have also appeared to have played an important role in bolstering the crypto economy. Although stimulus payments were intended to help Australians cover expenses during the financially difficult lockdown period, market analysis reveals that many recipients have directed stimulus capital towards digital asset investments.

Coinbase co-founder & CEO Brian Armstrong published Coinbase reposit data in mid-April revealing a significant spike in cryptocurrency purchases that match the $1,200 US stimulus package, a pattern reflected in Australian crypto markets.

Data published by blockchain analytics firm Glassnode indicates renewed global interest in cryptocurrency — the number of active Bitcoin addresses that hold 0.1 BTC or more reached a new all-time high in mid-June.

The seven-day moving average of the number of active Ethereum addresses has also peaked to the highest point in two years, mirroring numbers last seen before the late-2017 all-time Bitcoin price high of nearly $20,000 USD.

Australians aren’t only interested in buying cryptocurrency, however — they’re also spending it in Australian retail stores at record numbers.  Data published by crypto payment platform HULU via Bitcoin Cash reporting platform Bitcoin BCH indicates that retail crypto spending is returning to pre-lockdown levels via HULU alone.

With over $180 billion in value transacted over the Bitcoin network in the second quarter of 2020, Bitcoin dominance continues, amounting to $2 billion per day in value transfer.

Categories
Australia Travel

Travala Brings 170% Surge in Crypto Travel Revenue to Australian Tourism Economy

Australia’s international travel ban has devastated Australian tourism businesses — A new partnership between Expedia and Travala, however, could see domestic crypto travelers boost industry revenue.

Australian online travel agency platform Travala is bringing Bitcoin payments back to the tourism industry through a new partnership with international travel bookings giant Expedia. The new partnership is positioned to deliver a much-needed digital currency injection into the faltering Australian tourism industry.

Australian Travel Ban Remains in Effect

Australia’s outward travel ban, originally set to run from 18 March to 17 June 2020, was quietly extended to September 16 last month. With mid-year holiday options strictly limited to locations within Australia and, in some cases, in-state only, Australian tourism businesses are turning to domestic travelers in order to recover from a $15 billion downturn in tourism industry revenues.

Travala’s new partnership with Expedia Partner Solutions, announced on July 6, will bring cryptocurrency payments return to the travel industry and open the doors to over 700,000 hotels worldwide — including more than 8,000 Australian tourism businesses.

Using Travala, Australian domestic travelers are now able to pay for hotels and accommodation in over 30 cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, and Travala’s native token, AVA. Expedia has made cryptocurrency purchases available in the past, but ceased accepting digital currency payments in mid-2018.

Domestic Tourism Set to Benefit from Crypto Payments Boom

With the Australian domestic cryptocurrency valued in excess of $5.9 billion with over 300,000 active cryptocurrency users, Travala’s crypto-friendly local travel options are uniquely positioned to provide much-needed capital flow into the stalled Australian tourism sector.

Travala CEO and co-founder Juan Otero highlighted the positive impact of digital currency on tourism revenue worldwide in a July 6 press release:

“Our latest month-on-month data shows consumer confidence and the desire for travel is returning, with an 81% increase in room nights booked and website traffic up 50% week-on-week.”

Travala’s latest report data indicates a healthy rebound in the travel industry, revealing a 170 percent increase in booking revenue. Notably, 13 percent of Travala’s bookings are made in the platform’s native AVA token — which can now be used to purchase goods and services at over 500 retailers across Australia.

The prospects of international travel for Australian holidaymakers, however, aren’t looking great.  Speaking in June, Tourism Minister Simon Birmingham stated that borders are likely to remain closed until 2021.

Australia’s ongoing travel ban is expected to cause a drop in GDP of 0.7 percent, with roughly 7,200 Australian tourism businesses expected to close permanently before Q4 2020.