FlashFX first off the block to use blockchain for international money transfers and launch into Asia
Foreign exchange digital currency provider, FlashFX, announces it is the first Australian company to receive an Australian Financial Services Licence (AFSL) from Australian Securities and Investments Commission (ASIC) to transfer money internationally using blockchain technology.
The FlashFX infrastructure is built on the Ripple distributed ledger technology using their real time currency settlement and payment network.
“FlashFX is designed to revolutionise the way everyone makes international money transfers,” says Chief Enabling Officer, Nicolas Steiger.
“We purpose built the platform to move money overseas securely, quickly, cheaply and with more control for consumers.
“Blockchain offers a cryptographically secure end-to-end payment flow and records all transacted information. Being regulated by ASIC adds that extra layer of security and trust for the consumer and sets a benchmark for the digital currency industry in Australia.”
FlashFX Chief Technology Officer, Michael O’Sullivan adds: “Blockchain technologies are going to significantly change how value is exchanged in our economy. The use of technologies like Ripple is the start of this move to an ‘internet of value’ – which we are excited to be part of.”
According to the Australian Transactions Reports and Analysis Centre (AUSTRAC) Australia processes $50 billion a year in cross-border payments.
“The majority of transfers still take place directly between the banks but the market is large and there is room for companies like FlashFX to compete in this space,” Steiger adds.
The company’s focus is to grow the mass consumer market in Australia and is poised to be at the forefront as digital currency adoption and peer-peer transactions take off.
The EUR and USD are currently available via the Ripple platform. The company plans to onboard additional currencies in the near future with the first priority being Asia.
Danielle Szetho, CEO of Australia’s fintech industry association FinTech Australia, welcomed the Flash FX announcement and said it provided additional evidence of Australia’s growing expertise in blockchain technology.
“Australia is taking a global leadership position with blockchain, including through developing world standards and researching and explaining the best use cases for this important technology,” she said.
“We are already seeing Australia being recognised as a blockchain innovation centre and this is a trend we expect to accelerate.
“FlashFX is a great example of an Australian company using our fertile blockchain environment to drive innovation and improved financial services.”
This Australian fintech start-up is on the road to expansion and has been issued a money service operator licence to operate in Hong Kong.
“The licence allows us to set up our infrastructure in Asia and make direct payments to and from Australia or Hong Kong without a third party interfering.
“This is an important milestone for the business to access Northern Asian currency flows and to be licenced. Digital currency regulation and adoption is still in its infancy across the globe,” Steiger adds.
As part of the company’s expansion plans, FlashFX will target small and medium sized importing businesses, which send money overseas to purchase goods and services.
In addition, there are plans to launch a white-labelled version of its platform and to partner with licensed money service businesses (MSBs) in South East Asia and the Middle East.
FlashFX is founded and bootstrapped by fintech Sydney based entrepreneurs Nicolas Steiger and Michael O’Sullivan.
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