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BTC Markets Becomes Australia’s First Domestic Crypto Exchange To Score AFSL License

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Australia’s home-grown crypto exchange- BTC Markets announced that it has bagged the Australian Financial Services license [AFSL] via its sister firm, BTCM Payments.

An AFS license is mandatory to conduct a financial services business in the country. It authorizes the holder to provide service, advice, deal, or create a market for a financial product. Besides that, it also allows the provision of custodial or depository services, and so on.

Three months ago, FTX’s Australian subsidiary gained the AFS Licence by acquiring an unnamed entity that previously held the permit.

BTC Markets founded in 2013, rose to become Australia’s largest cryptocurrency exchange. It boasts of having over 325,000 local users who have traded $21 billion on its platform.

The fintech firm was instrumental in providing remitters access to Ripple’s On-Demand Liquidity [ODL] payments solution. This in turn made cross-border payments completed in seconds, the first of its kind technology in the nation.

Even though licensing would not be a deal-breaker, BTC Markets says it would prepare the firm for upcoming regulations.

That said, the nation’s lack of regulatory clarity has acted as a roadblock for financial firms.

The country’s largest bank, Commonwealth Bank [CommBank] had recently planned to launch its crypto trading app. But due to regulatory hassles, it had to halt the release of the pilot program.

Although the fall of Terra’s stablecoin UST along with the recent price drop in the broader crypto market might have also acted as a catalyst.

However, Australia’s newly-elected Prime Minister Anthony Albanese reportedly tasked his cabinet to deal with three top agendas. One of them is regulating the digital assets industry.

Australia’s New PM Includes Crypto As A Top Priority

Caroline Bowler – Chief Executive Officer of BTC Markets and a member of Blockchain Australia has doubled down on the newly-elected government to continue the work of the previous one and create a regulatory bill focused on digital assets.

According to the chief exec, the authorities’ “primary concern” will be to maintain a balance between formulating suitable rules and “leaving room for innovation.”

“There is a real opportunity for the government to assist with innovation and support it, relating to the significant role that financial services play in the Australian economy, but also its position globally,” Bowler concluded.

Australia Gets the Green Light to List Its First Bitcoin ETF Next Week

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According to the Australian Financial Review, Australia’s bitcoin exchange-traded fund (ETF) is poised to debut on the Cboe next week, as the country’s largest equities markets clearinghouse gives participants the green light.

According to the article, Cosmos Asset Management might launch its bitcoin ETF as early as April 27.

However, unlike other comparable products globally, Australia’s first Bitcoin ETF would invest in shares of Purpose Investment’s bitcoin ETF – North America’s first bitcoin spot ETF that began trading in early 2021. In February, Cosmos teamed with Purpose Investments.

Australia’s bitcoin ETF might attract $1 billion

To let a bitcoin ETF begin trading under its cover, ASX Clear wanted a 42 percent margin. According to reports, there are currently three institutional clearing participants and one retail clearing participant prepared to offer the required margin to trade a bitcoin contract.

Last year, Cosmos, which Nasdaq-listed bitcoin miner Mawson Infrastructure Group controls, entered the cryptocurrency fund management sector. The entry was along with the Global Digital Miners Access ETF, which invests in bitcoin mining companies.

“We are now at our minimum number of clearing participants and that means we are good to go.”

Hamish Treleaven, chief risk officer at ASX

According to the article, ETF Securities, VanEck Australia, BetaShares, and Monochrome Asset Management are among the asset management firms interested in registering bitcoin-linked ETFs in Australia.

A successful launch, according to Grumelart, will result in an influx of new gamers. “If outside markets are any indicator, a successful debut would almost certainly result in a slew of listings for crypto asset-based funds other than Bitcoin,” he added.

Since last year, when Cosmos launched its Global Digital Miners Access ETF, this will be the firm’s second crypto-related ETF.

Over the last year, the country’s officials have been striving to establish clear laws for the crypto business. Senator Andrew Bragg believes that additional jurisdiction for the Australian Securities and Investments Commission (ASIC) is improper until bitcoin is recognized as a financial asset under Australian law.

Australia’s Commonwealth Bank Falls Prey to a Crypto Scam

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Commonwealth Bank of Australia has recently come across fake news spreading on social media, including Facebook. The phony news state that the bank has partnered up with a cryptocurrency trading platform.

The news also encouraged people to invest in crypto assets which the bank completely denies and tags as false.

Australian citizens warned of the scam

The reported scam, which is in the form of articles purports as a story on the Australian Broadcasting Corporation, is generally a scam. It lures the customers to click on the link, redirecting them to the scammer’s website.

The scammers will collect the personal details and funds of the users who click on the link.

CBA has reported the issue to the relevant authorities and asked the media publications to take down the fake article.

The bank has warned the customers not to click the links on the articles as it can result in the users losing all their funds. The bank also warned that they would never ask for the customers’ personal information through email or phone calls.

They also asked the customers to be cautious before clicking any link and always navigate to the official website to stay safe and log in.

The scams can also impersonate the bank representatives and can come through phone calls pretending and can gain access to user information, funds and account.

The Commonbank has been a victim of a themed SMS phishing where the scammers spammed the customers with a phishing link pretending to be from the bank.

That’s not it; the bank has cited numerous scams and mentioned them for the customers to stay cautious.

In 2021, the Commonwealth Bank of Australia made history when it partnered with Gemini to become the first high street bank to enable customers to trade cryptocurrencies.

“We believe we can play an important role in crypto to address what’s clearly a growing customer need.”

said Matt Comyn, the bank’s chief executive

The Australian Competition and Consumer Commission (ACCC) filed a lawsuit against Meta last month, alleging that it “aided and abetted or was knowingly involved in fraudulent or misleading behavior and statements by the marketers.”

According to the Commission, Facebook failed to handle fraudulent advertising that was shown on the network. In response, a corporate spokeswoman said the company will “examine the ACCC’s latest filing and expect to fight the proceedings.”

SBF-led FTX opens its new branch in Australia

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Sam Bankman-Fried, CEO of Bahamas-based crypto exchange FTX announced the launch of its services in Austalia in the opening keynote at this year’s Blockchain Week, held at the headquarters of the Australian Securities Exchange [ASX]. 

The latest move, according to Bankman-Fried, is part of a larger effort to penetrate as many countries as possible. Stating that the world is “very much” looking for a major crypto hub in the APAC, he noted that other locations in the region “haven’t played out as expected”. “I think that has really left an opening for someplace to kind of grab that and service that region,” he added.

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The recent development comes amidst the Australian gov preparing to roll out cryptocurrency regulation. As per sources, the administration is planning to release three crucial documents by EOD aimed at reforming the crypto industry.

They would include suggestions for a new taxation structure for cryptocurrencies, rules to ensure investor protections against unscrupulous sellers, and regulations for regulating digital banks, crypto exchanges, and brokers, the article read.

Senator Andrew Bragg in a speech stated, “A new Digital Services Act would protect consumers but also “wholeheartedly and comprehensively” grasp an opportunity for Australia and “signal that we fully appreciate the promise and potential of blockchain technology”.

FTX expansion spree in Africa

Recently, the world’s largest crypto exchange by volume announced a partnership with Africa’s leading cross-border payment solutions AZA Finance. According to the press release, the collaboration intends to “expand the adoption of Web3 and digital currencies throughout Africa.” This also encompasses non-fungible tokens [NFTs].

A statement released by AZA Finance said the two firms will work to “create pathways for African users to participate and learn about the Web3 economy including educational resources & networking opportunities.”

The P.R added that the two firms are also hoping to “Make it easier than ever to deposit and payout in African currencies on FTX.com, including mobile money and local bank account integrations.”

In addition to building the Web3 infrastructure, the two companies will work to “onboard African NFTs and artists onto the FTX NFT marketplace.” They will also launch African currency and digital currency trading pairs, the release read.

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FTX embarks into Australian crypto market

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Following the acquisition of a key financial license in Australia, prominent cryptocurrency exchange FTX has officially opened its doors, as reported by local media. The company’s CEO Sam Bankman-Fried announced its formal debut of FTX Australia during a virtual talk to a gathering assembled for the country ‘s yearly Blockchain Week.

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Sam Bankman-Fried, CEO of FTX

Following the acquisition of an undisclosed company that formerly held an Australian Financial Services Licence, the crypto exchange has established a local presence. Other big exchanges, such as Binance and Kraken, had previously created a local presence in the last two years, and this decision seems to be in line with them.

Australians have had access to the exchange’s global basis for a while, but FTX is seeking to be in the foreground of the regulatory curve by satisfying policymakers and engaging with authorities ahead of time. In addition, Bankman-Fried said,

“We’d love to work with regulators and lawmakers on understanding the crypto ecosystem and build out regulatory frameworks for analyzing them.”

He went on to say that the firm was doing everything it could to help build a strong, healthy ecosystem in the country that prioritized consumer protection. According to a statement released on Sunday, the domestic exchange would offer most of its parent company’s bells and whistles while offering its goods in the crypto derivative and spot markets. It has also been announced that options contracts, futures contracts, contracts for difference, and leveraged tokens will be issued by FTX Australia, which will be based in Sydney.

Australia serves FTX as regional hub

When asked why he thought Australia was a significant territory that global exchanges should pay attention to, the 30-year-old CEO said the country had a huge chance to advance the rest of the continent through innovation.

According to the exchange, the establishment of an Australian subsidiary highlights the firm’s long-term commitment to the local market and is the inevitable next stage in its global expansion.

Furthermore, the exchange was awarded a licence to operate in the United Arab Emirates this week, following the passage of the UAE’s Virtual Asset Regulation Law, which also established a watchdog to oversee the nascent industry.

Crypto investors are in a weird limbo state in Australia: Fred Pucchi

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Australian crypto investors would be in a ‘weird limbo state’ if Treasurer Josh Frydenberg’s plans for regulation come to reality. This was observed by TCM Capital’s Fred Pucci who said its citizens are heavily invested in the crypto market ‘to help them buy a house or get ahead, but without the benefit of any safeguards’. The regulatory overhaul in the country includes a licensing regime for crypto exchanges and custody rules for assets and draws heavily on the recommendations of a Senate inquiry chaired by fintech enthusiast Andrew Bragg. Pucci further added,

“Some millennials are taking it to the extreme and putting all bets on. For the Liberals to have a policy that is going to help that market development and be sustained with more of an Australian presence and more Australian protections for investors, is going to be an attractive thing. If you look at the fine print of Treasurer Frydenberg’s document, the timetable for the key planks of this is not going to come through, assuming they win the election and parliament passes the legislation, until mid to late-2022.”

Another expert Chloe White is a former federal insider who feels the crypto industry is looking forward for a policy to be introduced quickly, but it was more important to get things right. ‘Policy that is rushed and poorly designed can backfire, as seen in the case of the New York BitLicense’, She warns. As a matter of fact, the New York administration allocated trading limits on state residents and required capital and on top of that costly licenses that most start-ups struggle to afford.

Crypto regulations in Australia

As per sources, the city-state has created a regulatory sandbox for more than 200 start-ups to play in while authorities keep a close watch. But Pucci noted that only a handful are issued licenses and are closely monitored.

According to an annual survey by Independent Reserve, around 28.6 percent of Australians who do not currently own crypto say they would invest if there were better consumer protections in place. One in three Australian crypto-owners say they would switch their primary bank to one that offers crypto products in the next 12 months, as per research undertaken by the digital payments firm.

Binance decides to pull the plug on futures and options trading in Australia

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One of the world’s largest cryptocurrency exchanges, Binance has been undergoing extreme scrutiny from regulators across the globe. The regulatory pressure surrounding the exchange has been surging by the day. This has further pushed the exchange to shut shop in several parts of the world. Australia was the latest country to lose certain services of Binance.

The crypto-verse has been subject to heat from regulators despite being known for its decentralized nature. Governments have started to pry into the crypto industry just as its demand began to surge. Binance recently had a major fallout with not just one regulator, but with regulators from several different regions. As the exchange continues to put in place better compliance methods, it was seen pulling the plug on various services it offers.

In a recent announcement, the exchange revealed that it would no longer offer futures and options trading services to its Australian customers by the end of this year. In a detailed post, Binance noted that Australian users would be given a period of 90 days to reduce and close their positions on derivative offerings.

Binance Australia to end derivatives offerings by December

The exchange noted that it intends to comply with the regulations put forth by the Australian government. In order to do so, the exchange would be discontinuing futures, options as well as leveraged tokens services in the country.

With a total of 90 days starting from 24 September 2021, Australian users would not be able to reduce or close their positions post 23 December 2021. Any positions that exist after this date would be closed automatically.

Additionally, during this period, Aussie users would still have access to certain services like being able to top-up margin balances to avoid liquidations and margin calls. However, the option of increasing or opening up new positions would not be allowed.

A spokesperson from the exchange reportedly stated,

“We proactively review our product offerings and activities on an ongoing basis, against user demand, evolving regulatory requirements, and future opportunities, to determine changes and improvements.”

The exchange clearly seemed to be enduring immense loss following the hold on an array of its services in its numerous branches. Recently CZ even admitted to the need for a “centralized entity.”

BIS’s latest project urges Australia, Malaysia, Singapore, and South Africa to test cross-border CBDCs

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The Bank of Internation Settlements’ aka BIS has been keeping an eye on the development of central bank digital currencies [CBDC] across the globe. In order to further spruce up the process, the bank hopes to initiate the whole cross-border system for CBDCs.

CBDCs have started to steer the world in a whole new direction. These central bank-issued assets seem to be the latest interest of governments across the globe. An array of countries have already developed the digital version of their fiat currency, however, a few others are still stuck in the research process. China has been at the top of the game as it has its asset already in use.

Now with an aim to get ahead in the race, BIS has urged the central banks of four regions namely, Australia, Malaysia, Singapore, and South Africa to join the bank’s latest initiative, Project Dunbar.

BIS’s Project Dunbar to focus on cross-border CBDCs

The aforementioned central banks have been working along with BIS to roll out a prototype that carries out cross-border CBDCs. The reason behind this is to uphold direct transactions and eliminating the requirement of intermediaries. With this prototype, the banks hope to diminish time as well as the cost of transactions.

Furthermore, the project would look into the “international dimension” of the design of the CBDC. Andrew McCormack, Head of the BIS Innovation Hub Centre in Singapore, would reportedly overlook the project.

Speaking about the same, McCormack said,

“Project Dunbar brings together central banks with years of experience and unique perspectives in CBDC projects and ecosystem partners at advanced stages of technical development on digital currencies. With this group of capable and passionate partners, we are confident that our work on multi-CBDCs for international settlements will break new ground in this next stage of CBDC experimentation and lay the foundation for global payments connectivity.”

Several bank officials from across the globe believe that this project could be great for the CBDCs of different countries.

Crypto rush forces Australia’s securities commission to warn users about unlicensed digital asset entities

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As cryptocurrencies and their related markets make their way up, regulators across the world have warned users of managing their capital in the nascent field. This has been mainly due to the large number of fraudulent activities in the industry mostly fueled by ignorance and cheap phishing tricks. To combat this rising issue, the Australian Securities and Investments Commission [ASIC] has taken the onus to inform its citizens about the do’s and dont’s of crypto trading.

One of the first markers provided by the ASIC was to be on the lookout for cryptocurrency exchanges that do not comply with AML regulations or don’t possess an AFS license. In the latest ASIC report, it was stated:

“An entity is required to be licensed by ASIC if they provide financial services (such as advising or dealing) in relation to financial products offered in Australia. Financial products include derivatives such as options, futures, leveraged tokens, and binary options. The sale of binary options to retail clients was recently banned in Australia under an order that will remain in force for 18 months.”

The ASIC has had to take such a step because of cascading number of cases related to capital fraud. Over the past couple of years, several Australians experienced massive losses be in the form of futures, options, or leveraged tokens. Bringing these entities under the national mandate is expected to streamline the processes and make them much more transparent.

Users have also been urged to cross-check their references and exchanges before investing their hard-earned funds. The first step is to check if the exchange or crypto trading body holds an AFSL or Anti-Money Laundering [AML] system. The Commission further added that users need to be more vigilant when checking for licensing on crypto entities.

Crypto.com to allow Aussies access to tax reporting functions

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Prominent cryptocurrency exchange, Crypto.com has expanded its horizons and has dived into Australian shores with its tax reporting service.

As the crypto market witnessed significant growth over the last couple of months, almost every platform part of the industry followed suit. The surge in the popularity of the industry caused an array of crypto platforms to flourish. The focus shifted to exchanges and they were required to be on their best game. The fervor around the industry hasn’t subsided hence crypto exchanges were expected to expand. Keeping the same in mind. prominent exchange, Crypto.com went on to roll out tax services for its Australian users.

The exchange, in a recent announcement, revealed that it had launched a free tax reporting service for its Aussie customers.

Crypto.com takes its tax reporting service to Australia

While the exchange has already been offering this service for its customers in the United States as well as Canada, Australia would be its latest region. With this service users would be able to file taxes without much hassle in an easy manner, the exchange claims. Alongside this, the tax reporting service would be free of cost for Crypto.com users.

Elaborating on the procedure the announcement further read,

“Users can import crypto transaction records from supported exchanges and wallets by uploading a CSV file, or using API synchronisation with major platforms like the Crypto.com App. In a matter of minutes, Crypto.com Tax is able to provide users with an estimation of taxable gains/losses on relevant crypto transactions, which can then be downloaded for tax filing in the reporting format of their choice.”

Additionally, users would be able to generate an array of things including, transaction history, organized and accurate tax reports. short and long-term capital gains as well as losses, and crypto-related taxable and non-taxable transactions. Furthermore, this service offered in Australia was reportedly formulated keeping in mind the region’s tax requirements.