Category: Australia

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Australia Crypto News Cryptocurrency Law Regulation

ASIC Releases Guidance Note for Australian ‘Finfluencers’

The Australian Securities and Investment Commission (ASIC) has released a document outlining which financial influencers may be in breach of the law. The move is being met with contention by many of these so-called “finfluencers”:

Digital Assets Are ‘Financial Products’: Senator

Finfluencers have the capability to offer incorrect, or unwise, financial information or products to their followers, either intentionally or accidentally. Some of the points on this guidance note include ensuring finfluencers are properly licensed to deal in a financial product or provide advice on a product, along with managing content to ensure it is accurate and balanced.

While the guide does not explicitly mention the crypto industry and its advisers and influencers, as crypto is counted as “investing services”, the rules still apply. This is backed up by pro-crypto NSW Senator Andrew Bragg.

https://www.linkedin.com/in/andrew-bragg-3296b823/overlay/photo/

ASICā€™s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product.

Australian NSW Liberal Senator Andrew Bragg

The move from ASIC is being heavily critiqued online by several financial influencers, with many suggesting the guide is all-encompassing in the sense that almost anything in the way of advice could still influence someone to invest.

The tighter regulations will come with penalties of up to five years’ jail for individuals and extreme fines for corporations.

ASIC Cautions Investors and Exchanges

ASIC has issued finfluencer warnings in the past, with the commission last year urging young investors in particular to be cautious. ASIC has stated that while using social media is a viable means of collecting background information on a topic, such info may be unlicensed and inaccurate.

More recently, ASIC has issued a warning aimed at crypto companies, informing them that they should expect tighter regulations in the future with the aim of pulling the crypto industry into line with traditional financial industries.

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Australia Bitcoin Crypto.com Payments South Australia

South Aussie Service Station Partners with Crypto.com to Accept Crypto

Australiaā€™s On the Run (OTR) petrol stations and convenience stores will be accepting crypto payments as soon as July 2022. The move comes as Peregrine Corporation, a South Australian group of companies, teams up with global exchange giant Crypto.com to introduce cryptocurrency payments in all its OTR stores:

Move Makes Peregrine the Largest Australian Business to Accept Crypto Payments

Peregrine is the largest privately owned company in South Australia and is best known for its OTR convenience store/petrol station outlets, of which it has more than 170 across South Australia and Victoria. This move will allow customers to pay for fuel, snacks, and even Subway in more than 30 different cryptocurrencies. Once the system is finalised in July, Peregrine will become the largest business in the country to accept in-store crypto payments.

Peregrine is working with Singapore-based exchange Crypto.com to implement its Pay Merchant service as its payment settlement layer. Datamesh, a Sydney-based payments systems provider, will roll out point-of-sale terminals allowing shoppers to pay via the Crypto.com application with their crypto holdings.

Yasser Shahin, executive chairman of Peregrine Corporation, said:

The growth and mainstream acceptance of cryptocurrency adoption in Australia and the rest of the world have been phenomenal and has offered us a clear opportunity to tap into the momentum of this fast-growing space for the benefit of our customers.

Yasser Shahin, executive chairman, Peregrine Corporation

Karl Mohan, Crypto.com general manager Asia and Pacific, describes the deal as a ā€œlandmark partnershipā€, adding that it enables the crypto company to ā€œwalk the talk on what we set out to do when we first launched in Australia – support our customers to pay with cryptocurrencies at real-time market prices and avoid the cost and hassle of fiat conversionsā€.

Australiaā€™s Foray into Crypto Retail Payments

Last year, Crypto News Australia reported that Australian companies were starting to accept Bitcoin as a payment option for their services. Companies from various industries are getting in on crypto payments; they include NBN Internet RSP Luantel, Queensland Solar and Lighting, Broadwater Build Perth Building Company, Dream PC Australia, and Pet Parlour Australian Online Pet Shop. However, in a new report published this year, it was found that Bitcoin payments have declined while other cryptos surged in payment usage.

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Australia Blockchain Crypto News

TAFE QLD Creates First Accredited Blockchain Technology Course

In early March, Australian state Senator Andrew Bragg urged the Australian blockchain industry to pick up the pace or risk falling behind other developed nations. Almost exactly a month later, TAFE (Technical and Further Education) Queensland has answered the call by announcing the world’s first accredited course in blockchain technology.

Applications in Arts, Banking and Business

The new course, which will equip graduates with a Diploma of Applied Blockchain, will enable real-world applications in the arts, banking and business sectors.

According to its TAFE overview, the course is designed for experienced professionals with basic experience in business planning, blockchain and distributed ledger technologies wanting to formalise or further their skills in this area.

Recent workforce data from LinkedIn identified blockchain as the most in-demand hard skill of 2020, with qualified professionals in the field in high demand.

Among other specifics, the TAFE course will cover how to:

  • develop a blockchain business model implementation plan;
  • apply big data and blockchain technologies to the Internet of Things (IoT);
  • develop a team business model that aligns team operations with a blockchain business model;
  • identify and apply big data to enable marketing strategies within a blockchain ecosystem; and
  • develop, monitor and maintain a governance policy within a blockchain network.

Successful completion of the course will allow graduates to seek work in a range of management or operational roles applying blockchain technologies within new and existing organisations.

How to Apply

To apply and learn more about study options for the TAFE Queensland Diploma of Applied Blockchain, visit TAFE’s website.

According to Austin Lewinsmith, co-founder of Blockchain Collective, a partner of TAFE Queensland, ā€œBlockchain technology will underpin the development of the Web 3.0 revolution because it provides highly effective, efficient and secure ways of managing data.ā€™ā€™

As also reported by Crypto News Australia this week, the Australian Web3 ecosystem is growing exponentially. The availability of this new course, therefore, could not have come at a better time.

Categories
Australia Bitcoin Bitcoin Mining Crypto News

Bengal Energy is Mining BTC in the Australian Outback Using Gas Wells

Canadian oil and gas miner Bengal Energy has commenced a trial to assess the profitability of mining bitcoin from its stranded gas assets in the Australian Outback.

According to a report in The Australian, Bengal Energy has commenced its program to install approximately 70 Bitcoin mining rigs within a “donga”, a term that left some confused from the outset:

‘Stranded Energy’ Problem

The initial project entailed assembling a series of previously out-of-operation gas wells in South Australia’s Cooper Basin, all of which were purchased from Santos Energy and Bridgeport Energy.

Bengel Energy’s chief operating officer, Kai Eberspacher, commented that the newly acquired wells however posed a significant problem given that they were “stranded” – able to produce power but unable to be distributed as current pipelines are out of reach.

While a pipeline is under construction, efforts have been delayed due to Covid-19 induced supply chain bottlenecks. In Eberspacher’s words:

We were basically looking at six months of having wells ready but without an outlet. We were dealing with stranded assets.

Kai Eberspaecher, chief operating officer, Bengal Energy

Bitcoin Mining Plugs Gap

After having outlaid the initial capital without a return on investment, Bengal Energy turned to portable Bitcoin mining rigs in dongas. A trial donga is being fitted with 66 mining rigs, able to generate approximately 0.005 BTC, or A$315, per day.

Kai Eberspacher, Bengal Energyā€™s chief operating officer. Source: The Australian

If the trial is successful, the company has indicated that it intends increasing its mining efforts by a factor of 10 to 20.

Energy Companies and Bitcoin – Match Made in Heaven

Despite recent efforts by some to discredit bitcoin mining, we’re seeing growing evidence of energy companies leveraging stranded assets and flared gas to power bitcoin mining operations.

While this has been happening in West Texas for some time, last week US energy giant ExxonMobil joined ConocoPhillips in disclosing that it was mining bitcoin with flared gas and looking to expand.  

A recent report found that bitcoin mining consumed as little as 0.05 percent of global energy with emissions at “inconsequential levels”. It’s also been suggested that up to 58 percent of Bitcoin’s energy composition is renewable, making it one of the greenest industries in the world.

Irrespective, those who believe bitcoin has no value will necessarily also believe that its appropriate energy use is zero:

“Imaginary money”… #NGMI.

Categories
Australia Blockchain Crypto News DAO DeFi Immutable X Maple NFTs Synthetix

Australian Web3 Ecosystem Is Growing Fast, Driven By Crypto and Blockchain Technology

The Australian Web3 ecosystem has grown immensely over the past couple of years and is driven by cryptocurrencies and blockchain technology.

The emergence of NFTs, DeFi, and decentralised autonomous organisations (DAOs) has expanded the space. The days of ICO token raises have been superseded by building meaningful communities. Notable communities/projects in the space include Immutable, Synthetix, Sigma Prime, Maple Finance, and DAOunder, all of which have helped garner increasing interest in the ecosystem.

Australia web3 economy. Source: crypblizz

The branding surrounding Web3 has made the space more inviting than the nuanced word ā€˜cryptoā€™ would have suggested a few years ago.

Aussie Blockchain History in Brief

  • pre-bitcoin 1970 -2000s: cypherpunk movement;
  • 2009 ā€“ 2013: the birth of Bitcoin and underground knowledge of the space;
  • 2014 ā€“ 2016: Ethereum launches and early adopters spring up;
  • 2017 ā€“ 2018: ICO boom and an influx of capital and interest;
  • 2018 ā€“ 2020: ‘DeFi Summer’, where projects started to build the foundations for decentralised finance;
  • 2021: NFTs, DeFi and DAO boom interest; and
  • 2022: who knows?

The following categories summarise the activities within the Australian Web3 ecosystem:

Communities/DAOs

These form the backbone that brings people together, and with recent events, many communities have moved online to Discord. In-person events such as Blockchain Week show that people are willing to meet in real life again. By bringing it all together, people feel a sense of community and the ecosystem grows accordingly.

Non-Fungible Tokens (NFTs)/Gaming

NFTs took 2021 by storm and a lot of people are forking out vast amounts of money for expensive JPEGs. However, a lot of great Aussie projects such as Immutable, which was recently valued at US$3.5 billion, and Illuvium have also been making waves in the Web3 ecosystem.

Decentralised Finance (DeFi)

DeFi is such a vast category that it can be been broken down into the following:

  • Layer 1 blockchains: Fantom, Algorand, ThorChain;
  • Finance layer: Synthetix, Ren Protocol, Maple Finance, Zeta Markets and Drift;
  • Infrastructure: Rocket Pool, Chainflip, Sigma Prime; and
  • Identity: ArcX and BronID.

Venture Capital

Over the past two years, traditional Web2 funds have been spinning off an extra allocation into the space. Airtree, for example, launched a US$50 million Web3 fund, which is a very healthy sign for the growth of this sector.

Media

The right kind of media is essential in this growing space, with click-bait schemes popping up left, right and centre. Influencers who are voicing their opinions in this space can be invaluable.

Legal/Regulatory/Government

Bodies like Blockchain Australia are helping form relationships and policies within the ecosystem. Collaboration between these associations and regulatory bodies will accelerate the adoption process.

Exchanges and Retail Investors

Retail investors use these exchange platforms to enter the Web3 markets. BTC Markets, Independent Reserves, Coinjar and Coinstop are some of the first Australian native exchanges.

Categories
Australia Banking Crypto Exchange Crypto News

Mastercard Partners with Aussie Crypto Exchange in Effort to Tackle Debanking

Australian crypto exchange BTC Markets has entered a partnership with Mastercard, allowing it to accept card payments. This will mean more options for users and a positive step toward tackling debanking on Mastercardā€™s behalf.

Wider Range of Banking Options

Under the terms of the agreement, Aussies will be able to deposit and withdraw Australian dollars without fees via a broad range of means. Prepaid, direct debit and credit card payments will now be available on the exchange, whereas previously BTC Markets only permitted bank transfers:

The strategic merchant partnership is also about solving the issue of debanking, where a financial institution terminates, or denies, services to a client. While the practice is not illegal, a reason must be given for the termination. Typically, a bank will claim it seeks to mitigate risk by debanking a client, particularly in cryptocurrency-related cases.

Integrating traditional financial services with blockchain technology may be a remedy to this issue.

Past Debanking Cases in Australia

Allan Flynn, the owner of Australian exchange BitcoinCanberra, managed to settle a complaint against ANZ bank in October 2021 after being suddenly debanked. It took 20 months for Flynn to reach this outcome and appeared to be a turning point in the crypto industryā€™s fight against the practice.

Following this case, AUSTRAC ā€“ Australiaā€™s anti-money laundering regulator ā€“ issued a warning to banks closing unsuspecting accounts. The financial watchdog stated that ā€œbusinesses vulnerable to exploitation should not automatically have their accounts closed simply to avoid managing riskā€.

Banks are expected to assess risks on a case-by-case basis, without bias towards crypto-related businesses.

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Australia Blockchain Crypto News

ASX Blockchain Upgrade Delayed for the Fourth Time

The Australian Securities Exchangeā€™s (ASX) Clearing House Electronic Sub-Register System (CHESS) has been delayed yet again. The fourth setback for the blockchain-based upgrade is being blamed on the firm building the software, and is believed to have already cost A$187 million.

https://www2.asx.com.au/markets/clearing-and-settlement-services/chess-replacement
An updated clearing and settlement system is planned for CHESS. Source: ASX

Another Delayed ASX Upgrade

Thanks to this latest setback, the ASXā€™s data warehouse is reportedly facing “several months of delay”. It was initially scheduled to go live in 2023, but this latest news is placing a lot of doubt on the timeline.  

https://www2.asx.com.au/about/our-board-and-management/our-executive-team

We recognise the impact these changes will have on our customersā€™ programming activities and apologise for the inconvenience.

Tim Hogben, ASX group executive

It is unlikely that accreditation schedules can begin until July or August of this year at the earliest. The ASX is shifting the blame for the delay to Digital Asset, the company developing the worldā€™s first industrial-scale use of this technology.

Past ASX Blockchain Developments

In August 2020, the ASX looked to upgrade CHESS sooner than originally expected due to an increase in market pressure. However, in July of 2021, it was reported that ASX brokers were spending millions to adapt to the new blockchain-based upgrade, with CHESS making it difficult for SAFAA (Stockbrokers and Financial Advisors Association) members to interact.

Finally, the first of the Industry Test Environments (ITE1) for CHESS opened in December 2021. At the time it was a major step toward the final version of the system, which was set to go live next year.

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Australia Crypto Exchange Cryptocurrency Law Regulation

Australia Announces ‘Badge of Approval’ Certificates For Crypto Exchanges

The Australian Securities and Investments Commission (ASIC) has announced that crypto exchanges can now receive a tick of approval. Any exchange that is government-approved will earn a “badge” signifying a uniquely Australian stamp of quality.

Senator Jane Hume, federal Minister for the Digital Economy, announced a market licensing regime for crypto exchanges at Australian Blockchain Week 2022.

https://www.senatorhume.com/about/about-senator-hume

Australian investors will be sure that if they use a licensed Australian exchange, they can trust that exchange will deliver on its commitments to customers and have appropriate protections.

Jane Hume, Minister for the Digital Economy

Senator Hume stated that she believes the way forward for the Australian crypto industry is through the regulation of exchanges. While ASIC badges of approval represent only a small change, it is seen as a positive step toward local cryptocurrency integration.

ASIC Busy on the Crypto Front

ASIC has had to deal with a plethora of cryptocurrency-related concerns recently, issuing a variety of warnings to Australian exchanges and investors. Most recently, it warned crypto companies to expect greater regulation in future, in line with those governing traditional finance companies.

In July 2021, ASIC chairman Joe Longo declared crypto trading a “significant area of concern“, particularly in the wake of the Covid-19 pandemic. And, in November 2021, ASIC shut down A One Multi, an unlicensed financial services business based on Australia’s Gold Coast, for suspected unlawful activity.

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Australia Cryptocurrencies Cryptocurrency Law Regulation

ASIC Warns Aussie Crypto Companies to Expect Higher Regulation Moving Forward

The Australian Securities and Investments Commission (ASIC) has warned cryptocurrency companies that they will be held to the same standards as traditional finance companies, as the prospect of digital asset regulation strengthens.

The news was shared by ASIC commissioner Cathie Armour at Blockchain Australiaā€™s crypto conference on March 24.

Higher Crypto Regulations Coming

Armour detailed to conference attendees that the “growing maturity” of the crypto industry means that crypto businesses may need to alter how they interact with the regulator. Businesses looking to offer crypto-related products will be expected to meet the same requirements as all other companies in the wider finance industry.

https://www.linkedin.com/in/cathie-armour-50b89013a/overlay/photo/

Weā€™re doing this because weā€™re keen to maintain our robust regulatory framework. Weā€™re really looking for industry to work closely with us and to do a lot of their own homework to navigate the details.

ASIC commissioner Cathie Armour

This isnā€™t the first time Armour has bestowed a warning on the financial industry. She has previously stated that Aussie influencers ā€“ specifically, ā€œfinfluencersā€ – could face up to five years’ jail time for breaking financial advice laws.

Past ASIC Warnings to Investors

ASIC is repeatedly warning investors about various dubious practices occurring within the financial industry. Most recently, the regulator cautioned against switching to a self-managed super fund (SMSF) to invest in crypto. Following an increase in crypto marketing for “investment opportunites”, Aussies were being “enticed” to switch to an SMSF before investing.

In October 2021, ASIC began joining investor Telegram groups to warn about an increase in pump-and-dump schemes. ASIC contacted one particular private Telegram group of 288 members, involving potentially illegal market tip-offs, to warn those involved that they were being monitored.

In August 2021, ASIC again cautioned Aussies to beware of unlicensed crypto companies. The warning was warranted due to an increase in losses from trading crypto-related products.

Categories
Australia Crypto News Decentraland Metaverse

Indigenous Australians Making an Embassy in the Metaverse

Indigenous Australians are consolidating their presence in the digital landscape by establishing the First Nations Cultural Embassy in the metaverse.

Oldest Culture Explores Emerging Technologies

Last month, the Sovereign Yidindji Nation from the rainforest region of far north Queensland launched its own digital currency, making it the first indigenous enclave in Australia to enter the cryptosphere.

Now, Dr Vanessa Lee-Ah Met and Bibi Barba – representatives of the Yupungathi Meriam Nation and the Darumbal and Yuin Nations, respectively – have issued a discussion paper seeking support to run the first operations of this pilot project, which aims to position the first peoples of Australia in the metaverse.

Dr Vanessa Lee-Ah Mat, Australian scholar from the Yupungathiand Meriam Nation. Source: Griffiths University

Crypto Can Help to Avoid Past Mistakes

One of the reasons to create a cultural embassy in the metaverse is to impart a sense of sovereignty to indigenous people. So far, Australia is the only Western country that abides by the term Terra Nullius, a legal concept that means “land of no one”, and used by the erstwhile British Empire to colonise Aboriginal lands without treaty or payment.

Blockchain is about transparency and trust […] With no recognition of cultural significance, land or indigenous culture, there is a risk of repeating the mistakes of the past.

Dr Vanessa Lee-Ah Mat

“Crypto allows us to be part of the conversation again by adopting the newest digital tech,” added Dr Lee-Ah Mat.

The First Nations Cultural Embassy is now in the design phase. It plans to expand across numerous metaverse platforms, such as Decentraland and Sandbox, and the project has already received offers to donate plots of land.

Using Blockchain to Preserve Australian Indigenous Art

Indigenous Australians are not only using crypto to make their voices heard; it’s also about preserving their art and culture with blockchain. This week, Crypto News Australia reported that artists from the Yolngu nation are digitising their work as non-fungible tokens (NFTs) in an attempt to create a new source of revenue and also preserve their art for future generations.