Solving the problem of accessing money overseas
With big plans to disrupt the international payments industry, Australian fintech start-up Pelikin is looking to cash in on our dissatisfaction with the banks. Sam Brown’s own difficulties in accessing his funds while travelling in Europe and Asia inspired him to found Pelikin in 2015 with the goal of first becoming a multi-currency debit travel card provider. Pelikin is preparing to launch its beta service, with plans to open registration to the public around the middle of the year. Having relied on seed funding to date, the Australian start-up plans to take advantage of equity crowdfunding to support its next growth spurt. The Pelikin debit card will be accompanied by […]
How Fintech is changing the way we do business?
Although it seems ubiquitous, Fintech is actually still a very young industry. That said, there are certainly distinctly common threads across those within it, which could largely be considered increased accessibility, and speed. Fintech is responsible for the introduction and rise of peer-to-peer payments, mobile banking, and omnichannel payments processing which benefit not only individuals but also businesses. We’re living, working, shopping, and transacting in the internet era, so it’s expected that the way we do businesses is equally as nimble – and it’s Fintech that makes this possible. Regardless of the size of a business, keeping up to date with financial technology is imperative for not only increased efficiencies […]
Australia rolls out new AML/CTF laws for digital currency exchange providers
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced that digital currency exchange (DCE) providers would be required to meet Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) obligations, effective 3 April 2018. AUSTRAC is Australia’s financial intelligence agency with regulatory responsibility for AML/CTF. “A ‘policy principles’ period of six months will be in place from 3 April 2018. During that period, the AUSTRAC CEO can only take enforcement action if a DCE business fails to take ‘reasonable steps’ to comply,” AUSTRAC said. Under the new AML/CTF laws, DCE providers would be required to: Adopt and maintain and AML/CTF program to identify, mitigate and manage money laundering and terrorism financing […]
This Australian fintech leader says cryptos won’t replace traditional currencies in ‘another three lifetimes’
The value of bitcoin lies in its use as a finite commodity protected by rock-solid cryptography, rather than a currency used to buy goods and services, according to Loretta Joseph, chair of the Australian Digital Commerce Association (ADCA). Joseph spoke to Business Insider following reports that Australian crypto trading exchanges must now comply with standards set out by financial intelligence agency AUSTRAC. The announcement followed an 18-month consultation period between AUSTRAC and the ADCA.“We have defined crypto as a commodity,” Joseph said. “It’s not a currency for use as a means of exchange.” “There was recently a key legal case in New York which defined bitcoin as a commodity. So […]
First Australian digital currency exchange regulated: Independent Reserve
Independent Reserve, the Australian digital currency exchange, yesterday became the first Australian exchange of its kind to be regulated. Independent Reserve is the first exchange to be regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC). Set up in 1989, AUSTRAC ensures Australian institutions conform to the required standards around Counter-Terrorism Financing and Know Your Customer rules. CEO Adrian Przelozny said the regulation represented a huge leap forward for the local digital currency industry. “We have been lobbying for increased regulation since we opened for business in 2014,” he said. “We passionately believe that the digital currency economy will – and should – become just another part of the mainstream […]
Cryptocurrency owners must be aware of tax changes
Changes to Australia’s anti-money laundering rules have come into effect today, and will see cryptocurrency exchanges and transactions more susceptible to the scrutiny of the Australian Taxation Office (ATO), according to HLB Mann Judd’s Peter Bembrick. Bembrick, tax partner at HLB Mann Judd Sydney, said the rules would catch cryptocurrency owners by surprise, and ignorance is not a defence for failing to pay the appropriate tax. Bembrick said to avoid falling foul of the ATO, cryptocurrency owners should know that the ATO teats cryptocurrency as an asset for tax purposes, and, as such, the price in Australian dollars will change over time. There is also a taxable capital gain when […]
Cryptocurrencies aren’t ‘currency’, says RBA
The Reserve Bank of Australia has reiterated its attack on cryptocurrencies, questioning their purpose and pointing to the lack of demand from the finance industry. Speaking in Sydney at the ASIC Annual Forum 2018, RBA assistant governor Michele Bullock said she “object[s] to the term ‘cryptocurrency’”. “It isn’t currency. They’re not currencies. You can’t use them, typically, to make payments,” she said. “They don’t store value, and they’re not a unit of account. The name’s a misnomer to begin with.” Ms Bullock pointed out the fact that the RBA did already have electronic Australian dollars, called eAUD or ‘exchange settlement accounts’, but that this was restricted to banks needing to […]
Digital Currency market in Australia grows as trading on crypto-exchanges tops AU $3.9 Billion in 2017
Australia’s digital currency market is booming. This is according to a report by the Australian Digital Commerce Association (ADCA) and Accenture that tallied the numbers for 2017. During the year, over AU $3.9 billion was traded on cryptocurrency exchanges with more than 300,000 active traders. Unsurprisingly, Accenture / ADCA said the majority of traders were under the age of 40. Even more telling is the information that 40 percent of cryptocurrency customers are aged 18 to 29. The most popular digital currency was Bitcoin with AU$1.86 in volume followed by Ethereum with AU $712 million in trading. The research also revealed that crypto is creating jobs. Employment across the cryptocurrency […]
