Category: Australia

Categories
Australia Cardano Payments

30 Percent Of Australian Businesses Go Cashless, Paving The Way For Retail Crypto Adoption

During the ongoing pandemic, businesses across Australia have seen a marked increase in cashless payments — nearly a third of businesses now receive over 95% of their payments via contactless methods, with the steepest drop in cash payments during this period happening in  April.

Australian developers are now actively working to make it easier to pay businesses in cryptocurrency, the possibility to pay with alternative currencies may be on the horizon.

Colin Birney, Head of Business Development at Square Australia, released a statement  showing that as the current pandemic began health and safety concerns became the main focus for business owners adapting to the changing market.

“This raised questions of how to properly conduct business and accept payments during social distancing and stay-at-home mandates,” stated Birney. “The result has been a significant shift by many Australian businesses away from cash, although we have seen variances across industries and in different parts of the country.”

30% of Australian businesses are prepared to enact a payment environment similar to the one found in Holland where cashless payments are strongly preferred, and sometimes the only option. Many businesses appear to be considering introducing cryptocurrency payment options in order to smooth the transition.

Crypto as Cash in Australia Not Far Away

Australian regulatory frameworks provide both Aussie businesses and consumers with the ability to sell or buy goods and services with cryptocurrency. The ATO provides detailed guidance for businesses interested in accepting cryptocurrency as a payment method, with nuanced tax laws allowing consumers to exchange crypto for products or services without a significant tax bill. 

With over 300,000 active cryptocurrency users , Australian businesses have a vested interest in maintaining customer loyalty by allowing them to pay whichever way makes them comfortable. Cryptocurrency payment options would mirror European markets such as Germany and the Netherlands, where Sofort and iDEAL are alternative payment methods that can be used in most stores due to popular demand.

Due to projects such as Cardano e-Commerce paving the way for mass adoption of cryptocurrency payments on the Australian market, a future where cryptocurrencies are accepted as readily as credit cards may not be too far away.

Categories
Australia Crypto Exchange Cryptocurrency Law

iSignThis seeks $264mln in Damages from ASX Over Crypto-Related Trading Suspension

Aussie payments company iSignThis has announced legal action targeting the Australian Securities Exchange (ASX) over a dispute stemming from the suspension of iSignThis share trading — with the ASX pointing toward activity in the crypto market as a contributing factor to the trading halt.

iSignThis (ISX), an Australia-based fintech company that provides payment processing services for companies active in the Australian and European markets. The trading of ISX was suspended by the ASX in October 2019.

The ASX provided complex reasoning for the suspension of ISX trading, citing media speculation, the volatility of ISX share prices, and reviews into ISX company documents indicating that the company was providing services to cryptocurrency exchanges.

ASX “Damaged ISX Reputation,” No Public Crypto Link Evidence

In response, iSignThis has filed a court case against the ASX, arguing that their suspension from the stock market was unfair.

While iSignThis were previously seeking compensation worth only $27mln, they now have filed an amended statement of claim for the legal dispute opened earlier this year.

ISX is seeking compensation, attributing damages to the companies’ reputation caused by this report. iSignThis attempted to stop the report from being published – however, the ASX responded by saying that not releasing the Statement of Reasons would cause damage to its own reputation.

iSignThis Increases Damage Claims

Although the original lawsuit was seeking only $27mln in damages, iSignThis stated at the time that this sum would most likely increase if no resolution was provided. It has since increased nearly tenfold.

The CEO of ISX, John Karantzis, released a statement today concerning the reasons for the amended statement of claim.

 “Uniquely, ASX as a market operator may have misled and deceived the market that it is obligated to maintain on a fair, transparent and orderly basis, throwing doubt on its ability to manage a Tier 1 market.

“By any measure, the damages claimed and the impact of any adverse finding make this a high stakes and material case for the ASX.” 

If the courts rule in favour of iSignThis, who have vehemently denied providing services to any unregulated or fraudulent companies, the ASX will have to pay the damages requested, remove the Statement of Reasons and reinstate the trading of ISX shares.

Categories
Australia Blockchain Cryptocurrency Law

Australia Emerges as International Leader in DeFi & Tokenization

DeFi, or decentralized finance, is currently exploding across international financial markets, promising to disrupt and potentially replace traditional centralized banking services with decentralized, peer-to-peer alternatives — and Australian startups are leading the charge.

The nascent DeFi revolution is the product of synergy between the blockchain-driven tokenization and new regulatory frameworks that have adapted to the international cryptocurrency market. 

Legislative action aimed at providing cryptocurrency and blockchain enterprises with the ability to operate within the boundaries of financial law has legitimized the use of distributed ledger technology in finance applications, opening the door to a new generation of fintech and defi enterprises.

Australian Shifts Towards DeFi-Friendly Regulatory Position

Suggestions made to the Senate Select Committee on Financial Technology and Regulatory Technology in January 2020 saw the Australian Prudential Regulation Authority (APRA) suggest relaxed accommodations for digital wallets and payment services.

Proposed APRA solutions defined earlier suggestions brought forward by the Council of Financial Regulators (CFR) — a coordinating body of Australian regulatory bodies that includes APRA, ASIC, the Reserve bank of Australia, and the Treasury.

The fundamental goal of APRA and CFR discussions on DeFi and fintech regulation is clearly-clarified responsibilities and an update of the regulatory frameworks that govern stored-value facilities in order to better support Australian digital currency wallets and services, stablecoin ecosystems, and other DeFi applications.

Aussie DeFi Platforms Ahead of the Curve

APRA is expected to present a final report on the regulatory changes that will affect the developing Australian DeFi industry by October 2020 — but that hasn’t stopped enterprising Australian decentralized finance from launching highly successful platforms in the interim. 

Sydney-based Synthetix.io is a major success in the DeFi ecosystem, operating a decentralized synthetic asset platform that provides on-chain exposure to real-world stocks, commodities, currencies, and indices. More recently, the Sydney startup has unveiled a 2020 roadmap that will see the platform scale up to a decentralized Ethereum-based decentralized exchange to directly compete with BitMEX.

ThorChain, another successful Australian DeFi startup, aims to create a decentralized liquidity network that allows anybody to instantly swap any blockchain token, as well as facilitating decentralized lending and borrowing alongside stake assets in liquidity pools. 

Other Aussie DeFi projects such as Ren and mStable are rapidly establishing Australia as an international leader in the development and launch of decentralized finance. With friendly regulatory proposals in the works, Australia is positioned to become one of the most active contributors to the DeFi revolution. 

Categories
Australia Blockchain Scams

Bitcoin Bust Leads Queensland Police to Serial Scammer Peter Foster

Serial scammer Peter Foster was arrested on Thursday by Queensland police officers in relation to a multi-million dollar international sports betting scam. Bitcoin transactions have been identified as key evidence used by international cybercrime investigation and asset recovery IFW Global to implicate Foster in the scheme. 

Foster, a convicted conman who has served multiple sentences for fraud worth millions of dollars in damages in Australia, the United Kingdom, the United States of America and Vanuatu, was identified using a currency whose trail cannot be erased no matter how hard one might try – Bitcoin.

Foster allegedly established a company named Sports Predictions, offering gambling services and receiving sporting bets — which, complaints state, were never placed. This company attracted plenty of high rolling bettors – including an as yet undisclosed Asian businessman who claims to have lost around two million dollars in bets that were never placed.

IFW Global’s investigation into Foster’s alleged betting scam indicates that Foster may have received over $2 million in payments for bets that were never executed, with funds diverted and laundered in NSW. Statements issued by the NSW police indicate that the state police force will apply for Foster’s extradition to NSW and expects to charge the sports betting platform operator with multiple fraud offenses. 

Serial Scammer Identified Through Blockchain Records

Transactions made through a blockchain are irreversible and visible to anyone, allowing investigators to trace the transaction in order to discover an attempt at laundering the money through New South Wales.

Information passed through Queensland Police by IFW global included an attempt made by Foster to purchase a luxury moto yacht for over $1 million AUD, along with Bitcoin transaction data provided by an unnamed IFW client to private investigator Ken Gamble, chairman of IFW Global.

The use of blockchain technology to identify and arrest criminals is a growing trend, with Australian federal police now able to access deeper and more detailed information regarding cryptocurrency transactions. 

New initiatives launched by the Australian Federal Police will see officers posted around the world in order to establish a global net aimed at eliminating international scammers. More recently, a 52-year old Sydney woman was arrested for laundering over $5 million in cryptocurrency — the Australian Government’s new $1.6 billion cybersecurity strategy aims to eliminate scammers and cryptocurrency fraud both from within Australian borders and abroad. 

Categories
Australia Blockchain Markets

Australian Companies Invest Heavily in Blockchain During COVID Pandemic

New Australian corporate investment data reveals that Australian companies are investing heavily in emerging technologies such as blockchain in order to re-evaluate strategic priorities in a post-COVID economy.

A new research report published in collaboration between KPMG International and HFS Research surveyed 900 tech executives and C-level personnel from major Australian companies, revealing that Australia’s largest corporate entities are tightly focused on integrating blockchain technology and other emerging tech solutions as they reconsider the economic impact of the COVID pandemic.

Data published within the report indicates that 59 percent of Australian tech executives are actively accelerating digital transformation initiatives that integrate blockchain technology and other future-proof solutions as a direct result of the ongoing economic fallout.

Aussie Businesses Pin Hopes on Blockchain for Economic Recovery

COVID has had a significant impact on Australian businesses both large and small. While Australia’s economic recovery from the initial outbreak is underway, the aftermath of severe business restrictions and lockdowns include rapidly rising unemployment, massive government debt, and the permanent closure of thousands of domestic businesses.

Blockchain technology is seen by many Australian businesses as a potential means to accelerate economic recovery. The unique use cases of blockchain — such as the ability to store verifiably accurate data — have been recognized by major organizations such as the new APAC Provenance Council pin their hopes on blockchain-led revival in exports, for example. 

In statements released to Australian IT news media, KPMG Digital Delta Partner Jon Stone highlighted the importance of cost reduction as an important motivator of new technology adoption in the Australian economy:

“Australian respondents are driven to emerging technology because it is seen as essential to business survival — they are driven by a desire to improve decision making and customer experience. Cost reduction was a secondary driver for investment for the Australian respondents”

Australian businesses aren’t the only investors pinning their hopes on a blockchain-boosted economy — recent data published by RMIT reveals Aussie crypto trading peaked during the tightest Australian lockdown periods.

While the COVID pandemic has not affected all Australian equally, many companies are choosing to manage the financial fallout by transitioning into new digital business models that leverage the fast-moving nature of the new blockchain and cryptocurrency-powered digital economy. 

Categories
Australia Blockchain Industries

Blockchain-Backed Beef: Aussie Exporters Eyeball On-Chain Provenance for Chinese Market

© Emerson Vieira

Red meat accounts for around 1.5 percent of Australia’s GDP. For many years, Australia has consistently been one of the top five beef exporters in the world, with much of the exported beef going to one of Australia’s key business partners, China. Now, Australia Exporters are considering integrating blockchain technology to cement the Australian beef brand in China

But what do Chinese customers think of Australian beef, though, and how does blockchain technology relate to the Australian export beef market?

According to a recent study, Chinese customers are great fans of Australian beef. So much that they are willing to pay between 6.2 AUD and 11.27 AUD more for a 150 gram cut of beef — if they could be reassured that the beef was true blue through and through.

With this in mind, Australian brands, encouraged by the government, have settled upon blockchain technology as a way of reassuring customers worldwide that their fresh cuts are as authentic as the label states.

Recommendations published in the Australian Blockchain Roadmap state that in order to capitalise on Australia’s current technological standing and realise the potential of blockchain technology both locally and worldwide, Australian businesses must:

  • Integrate efficient, effective, and appropriate regulatory standards
  • Enhance critical blockchain skills in order to drive innovation
  • Establish strong international investment and collaboration — such as blockchain integrations into Australian beef exports

China Integrates Blockchain into Existing Supply Chain

Chinese commerce organizations have leveraged blockchain technology in order to track the provenance of products for some time now, with major enterprises incorporating blockchain elements in the supply chain to qualify product authenticity.

China Mobile, one of the leading telecommunications companies in China, has been distributing water purifiers whose usage was tracked through blockchain, rewarding users with free new water filters.

As a part of Australia’s greater roadmap for national blockchain development, Australian companies stand to benefit greatly from integrating blockchain technology into their business plans.

Not only are blockchain endeavors championed by the government, but they are also highly appreciated by clued-in customers who will use this technology to make more informed choices.

Setting an example for other high-profile Australian businesses who may be looking into adopting blockchain technologies, the Australian beef industry now has the opportunity to be a trailblazer that will soon lead to not only increased customer satisfaction but increased profit as well.

Categories
Australia Blockchain Jobs

Aussie Uni Students Studying Blockchain Tech to COVID-Proof Careers

Demand for blockchain-skilled workers has skyrocketed in Australia over the last four years, resulting in a new surge of blockchain-savvy Australian university students ready to take the lead in Australia’s new blockchain economy. 

Blockchain industry jobs have exploded in the Australian tech economy. Data published by CSIRO’s Data61 digital specialist arm reveals over 200 percent year-on-year growth in the demand for blockchain skills in Australia. 

Over 50 percent of Aussie blockchain jobs demand expertise in the integration of blockchain technology into enterprise organizations. New university programs, such as the Master of Blockchain Enabled Business at the Royal Melbourne Institute of Technology (RMIT), focus on arming the next generation of Australian tech workers with the skills needed to incorporate decentralized technology into business applications. 

Australian Blockchain Industry Demands Skilled Workers

Data published by Data61 in partnership with Burning Glass technologies indicates that blockchain related job opportunities are growing at an exponential rate in Australia, with the most demand originating from industries such as systems design, higher education, accounting services, software publishing, and banking.

Australia is one of the fastest-moving countries internationally for blockchain technology adoption, with the Australian Government recently publishing a Blockchain Roadmap that will see the country become a leader in decentralization within the next decade.

Australian university students that study blockchain technology are presented with a wide range of opportunities — Data61 studies demonstrate that every Australian blockchain developer is provided with over 14 job openings on average, revealing a severe skill shortage. 

Aussie Blockchain Devs Cash in on Rare Skills

The lack of blockchain-skilled workers in the Australian digital economy provides blockchain developers with a significant financial advantage. Aussie blockchain developers earn an average of $100,000 per year, compared to the $69,000 average Australian software developer salary. 

By equipping themselves with the skills needed to succeed in the new digital post-COVID economy, Australian students that study blockchain technology are positioned to capitalize on a growing job marketplace in which their skills are in high demand.

Categories
Australia Crypto Debit Cards

Crypto.com App adds AUD Bank Transfers Support

Crypto.com announced on 17th August that AUD Bank Transfers Now Available via their Mobile App.

This is great news for the MCO Visa Debit Card Holders as they can top up their crypto card without having to use a credit card or transferring crypto to the app.

You can access the new feature via the Fiat Wallet in the App and deposit cash via BPAY or NPP (PayID). Once enabled you will receive an email with the BPAY/NPP transfer details.

NPP takes an average of 1-4 business days for funds to appear in wallet, while BPAY takes an average of 3-5 business days.

How to do it

Also worth noting that “Future AUD withdrawal will only be available to users that have deposited via NPP”.

Categories
Australia Crypto News Cryptocurrencies Trading

RMIT Data Reveals Aussie Crypto Trading Peaked During COVID-19 Lockdown

What happens when you combine a lot of time at home to contemplate investment options and a growing population of tech-savvy aussies?

Data published by RMIT indicates that the result is a sharp increase in cryptocurrency trading. Australia’s RMIT University insights reveal that during the COVID-19 lockdown instituted between the 23rd of January and the 15th of May, cryptocurrency trading in Australia witnessed an increase in volume.

Data shows there was a 50% spike in home trading volumes, globally, and a 66% jump in Australia.

Angel Zhong – RMIT

Prior to the lockdown, the average daily turnover was only 0.27%, compared to 0.44% during the lockdown.

Whether this skyrocketing investment rate is due to an increase in corporate employees working from home, young entrepreneurs with more funds and options than ever before, or even the closure of casinos, it’s clear that cryptocurrency trading is increasingly considered as a lucrative investment option for investors across Australia.

Cryptocurrency Prices Rise as Australia Locks Down

This increase can be witnessed in the price mark-up since the beginning of the pandemic — Bitcoin is now valued at almost 16,000 AUD, more than twice the value it had in March 2020, where prices hovered near 7000 AUD.

Ethereum currently trades at  500 AUD, far above the price of 200 AUD it held in March, with prices surging by 30% between mid-July and today.

In both cases, the price has more than doubled for both leading cryptocurrencies. Is this a new phenomenon? Yes, but not really. Investing in strong currencies has always been a hallmark of days fraught with economic uncertainty – but now the paradigm has shifted.

In prior times of economic turmoil, the price of gold has increased.The price of gold has also surged during the recent COVID-19 lockdown, but for the first time in history, cryptocurrency has shown its face as an equally, if not superior investment option.

Is decentralization finally catching widespread appeal? Australian trade data appears to indicate that it is. Present data hints towards an economic future that will lean more towards deflationary currency than inflationary, centralized fiat currency.

DeFi is the latest major use case of blockchain technology.

Professor Jason Potts, the Director of the Blockchain Innovation Hub at RMIT University thinks that Decentralised Finance (DeFi) is the latest major use case of blockchain technology and could be the future of financial markets for tokenised assets.

Interest in DeFi – which is the beginnings of a new global digital financial system – is driving this current cryptocurrency price surge.

Jason Potts – RMIT

And also we saw that Decentralized Exchange Volumes are up 70% in June, past $1.5 billion according to Jack Purdy, decentralized finance analyst at Messari.

Blockchain networks are also starting to think about DeFi with projects like Qtum announcing a $1 million DeFi development fund.

Categories
Australia Bitcoin Crypto News Cryptocurrency Law Initial Coin Offering

Bitcoin is Back — But Will 2020 See the Australian ICO Rise from the Grave?

The crypto market appears to be poised on the cusp of a new bull run, with Bitcoin prices maintaining a steady hold over the $11,000 USD mark for several weeks running. 2017’s crypto bull run saw initial coin offerings explode internationally, with Aussie ICOs taking home hundreds of millions in startup capital. Can the Australian ICO rise again in the new regulatory ecosystem?

Late 2017 and early 2018 saw the initial coin model capture the attention of investors around the world. Startups such as Block.one generated $4 billion USD though the EOS ICO, the Telegram ICO captured $1.7 Billion, and other blockchain ventures such as Huobi, Tezos, and Filecoin generated hundreds of millions of dollars through token sales.

Australian Startups Led 2018 ICO Charge

Some of the most successful initial coin offerings of the 2018 token sale market were launched by Australian businesses. Australian stablecoin platform Havven raised $38.6 million in March 2018, while blockchain-based energy platform Power Ledger raised $34 million in an earlier 2017 offering. 

While success stories such as Power Ledger are now valued at over $44 million, other Australian blockchain ventures — such as CanYa’s unsuccessful bid toward decentralized freelance marketplaces, now boasting a market cap of just $2.5 million — were unable to ride the blockchain wave to market dominance. 

Initial coin offering funding in the first quarter of 2018 reached $6.3 billion, exceeding the total raised through token sales in the entirety of 2017. As “crypto winter” hit the digital asset market in mid-2018, however, confidence in the initial coin offering model fell as fast-moving regulators moved to place restrictions on how initial coin offerings were operated. 

Crypto Market Returns to Early 2017 Sentiment

With cryptocurrency prices now hinting toward a major breakout and decentralized finance platforms such as Chainlink demonstrating 400 percent price spikes in days, crypto market sentiment is approaching the same level of fervor witness prior to the late 2017 all-time market cap high. 

Sentiment towards the ICO model, however, hasn’t followed suit. Q1 2019 saw just $118 million raised through ICOs, with the initial coin model rendered obsolete compared to more complex token offerings such as BoltonCoin’s $68 million 2019 security token offering and BitFinex’s $1 billion initial exchange offering. The ICO model, as of December 2019, was dead.

Will the Crypto Renaissance Resurrect the ICO?

ASIC provides detailed guidance regarding the launch of initial coin offerings and digital assets in Australia, noting that from the perspective of the Australian government ICOs are now subject to both the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 (ASIC Act).

What does this mean for blockchain crowdfunding in Australia, though?

Any blockchain venture focused on selling tokens that fall within the definition of a financial product or security require significant compliance effort, such as the requirement of an Australian Financial Services license.  A token stale that doesn’t fall under the classification of “financial product” must substantiate this conclusion to ASIC, and must perform KYC and AML compliance regardless of the nature of the token sold.

In short, the new regulatory framework that governs Australian token sales exists to protect both Australian and international investors from the possibility of ICO exit scams, which were highly prevalent during the 2018 ICO “gold rush.”

ICO Renaissance Unlikely, New Token Sale Models Take the Lead

Earlier this year, Blockchain Australia published a report in partnership with the RMIT Blockchain Innovation Hub detailing a number of recommendations for the taxation and regulation of ICOs to overcome the regulatory hurdles that currently restrict Australian ICOs from executing successful launches.  

“A company’s proceeds from the issuance of tokens in an ICO should be considered ‘not assessable’ for income tax purposes, which is equivalent to the treatment offered to companies in respect of proceeds of a capital raise.”

Ultimately, the regulatory and taxation framework created to manage the ICO boom has stifled the possibility of launching a successful initial coin offering in Australian in 2020 — but leaves the door open to a new generation of STOs, IEOs, and other novel token sale structures that comply with the new regulations in order to further decentralize traditional equity markets.