Binance Australia offices reportedly searched by local regulator

July 5, 2023 Coin Telegraph

Australia

Binance said it’s cooperating with Australian regulators to meet local regulatory requirements amid reports of office searches.

Binance Australia is working with local authorities on meeting compliance requirements amid reports alleging that the company’s offices were searched on July 4.

"We are cooperating with local authorities and Binance is focused on meeting local regulatory standards in order to serve our users in Australia in a fully compliant manner,” a spokesperson for Binance Australia told Cointelegraph.

The Australian Securities and Investments Commission (ASIC) conducted searches at Binance Australia locations on Tuesday, Bloomberg reported. The investigation was part of an ongoing probe of Binance’s now-defunct Australian derivatives business, the report notes, citing anonymous people familiar with the matter.

Binance’s representative did not confirm or deny to Cointelegraph whether the company’s offices were searched, or even whether the company was aware of a local probe.

The news came a few months after the ASIC canceled the license of Binance Australia Derivatives in April 2023. The move followed a targeted review of Binance’s operations in the country, particularly the platform’s classification of retail and wholesale clients.

In response, Binance chose to pursue a “more focused approach” in Australia, opting to shut down derivatives trading in the country. Binance still offers spot trading services in Australia.

Previously, Australian regulators launched an investigation into Binance after the company abruptly closed some derivatives positions in February. The company cited investor classification compliance, reportedly claiming that it was restricting users that didn’t meet the requirements to be wholesale investors.

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Crypto Biz: Binance’s chaotic June, miners gear up for halving, Bitfinex’s Latam expansion

June 30, 2023 Coin Telegraph

Australia

This week’s Crypto Biz looks at the story behind Binance’s debanking in Australia, Bitcoin miners preparing for the next halving, and Bitfinex’s expansion in Latin America.

June was a tough month for Binance, as it faced stress tests worldwide after the United States Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange and its leadership.

In a nutshell, over the past 30 days, the Belgian financial regulator ordered Binance to cease all crypto services, the exchange failed to obtain a license in the Netherlands, Binance’s Brazil head has been subpoenaed to appear before Congress concerning a Ponzi scheme investigation, and just a few days ago, another ongoing investigation in France became public.

And there’s more: Binance’s United Kingdom-based subsidiary canceled its registration with the Financial Conduct Authority, and in the U.S., the exchange still has a long road ahead in its struggle with regulators. Moreover, the exchange was denied a crypto custody license in Germany and lost its euro banking partner.

Yet, despite all these developments, Binance remains untouched as the top dog among centralized exchanges, with $58.11 billion in total value locked, down from $63.8 billion on June 1, according to data from DefiLlama. The exchange’s next big focus is in the United Arab Emirates, an allegedly “prime destination” for crypto businesses seeking a clear path forward.

“We keep building,” Binance CEO Changpeng Zhao said in a tweet on June 28, following a long and hectic month.

This week’s Crypto Biz looks at the story behind Binance’s debanking in Australia, Bitcoin (BTC) miners preparing for the next halving, MicroStrategy’s latest Bitcoin purchase and Bitfinex’s expansion in Latin America.

Binance Australia got 12 hours’ notice before it was debanked, exec says

There was no prior warning, consultation or redress. In the middle of the night, Binance Australia’s team was suddenly told it would be “cut off” from the country’s banking system. Binance regional manager Ben Rose shared details of the exchange’s debanking in the country at the Australian Blockchain Week on June 26. In May, the company announced that its dollar services were suspended after its payments provider Zepto was told to discontinue support for Binance. According to Rose, the move impacted around 1 million Australian-based customers, with Binance now seeking an alternative payment provider.

*Ben Rose (right) on stage at the Australian Blockchain Week. Source: Cointelegraph*

Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving

Bitcoin miner firm Riot Platforms is loading up for the next halving cycle by purchasing 33,280 “next-generation” rigs for its Texas facility, costing $162.9 million. The miners, which were sourced from MicroBT, will boost the firm’s self-mining capacity by 7.6 exahashes per second (EH/s) to 20.1 EH/s once the machines are installed in the first quarter of 2024. Among the machines, 8,320 are M56S+ models with a hash rate of 220 terahashes per second (TH/s), while the remaining 24,960 M56S++ are slightly more powerful at 230 TH/s.

MicroStrategy buys $347 million worth of Bitcoin amid market thaw

MicroStrategy announced the purchase of 12,333 Bitcoin on June 28, worth $347 million at publication. MicroStrategy now owns 152,333 BTC worth $4.52 billion, with an average purchase price of $29.668 per coin. The coins were bought between April 27 and June 27, with the purchase partly financed by the issuance of new stock. MicroStrategy has been actively purchasing Bitcoin using cash and stock financing during the crypto bear market, sometimes irrespective of price. In Q1 2023, the firm reported its first profitable quarter since 2020 due to a one-time income tax benefit.

MicroStrategy has acquired an additional 12,333 BTC for ~$347.0 million at an average price of $28,136 per #bitcoin. As of 6/27/23 @MicroStrategy hodls 152,333 $BTC acquired for ~$4.52 billion at an average price of $29,668 per bitcoin. $MSTR https://t.co/joHo1gEnR0
— Michael Saylor⚡️ (@saylor) June 28, 2023

Bitfinex launches P2P trading platform in Venezuela, Argentina and Colombia

Digital asset exchange Bitfinex is expanding its operations to Latin America. The crypto company has launched a peer-to-peer trading platform in Venezuela, Argentina and Colombia, allowing users in the South American nations to buy and sell Bitcoin, Ether (ETH), Tether (USDT), Tether’s euro-pegged stablecoin, Tether EURt (EURT), and Tether Gold (XAUT). In April, Bitfinex’s El Salvador arm received a digital asset service provider license from the National Digital Asset Commission. Last month, the exchange partnered with Chile-based crypto platform OrionX to support local education and financial literacy programs.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

CBDCs aren’t about solving today’s problems — Australia’s CBDC lead

June 30, 2023 Coin Telegraph

Australia

Dilip Rao, a former Ripple executive who's now leading Australia’s CBDC pilot has been examining 14 possible use cases of central bank digital currencies.

Central Bank Digital Currencies (CBDCs) may not solve any problems faced today, but could be the answer to ones not even fathomed yet, says the executive spearheading Australia’s CBDC pilot.

Speaking to Cointelegraph, Dilip Rao, a former Ripple executive who's now spearheading Australia’s in-pilot CBDC research project, believes a central bank-issued currency could be built for use cases not yet considered:

“It may not solve a problem today, but maybe it solves a problem the day after tomorrow.”

Rao serves as the research program director at the Digital Finance Cooperative Research Centre (DFCRC) which is collaborating with the Reserve Bank to explore use cases of a potential CBDC.

Rao, however, said the question is yet to be answered why individuals would want or need to use one.

One possible future use, Rao explained, could be large institutions trading tokenized assets on marketplaces that may prefer using a CBDC to mitigate risks.

Big shout out to attendees at the #AustralianCBDCPilot Conference last Friday - 100 in person and over 150 online!

15 use cases demonstrated, three panels offered deeper insights into the #futureofmoney!

Thanks @RBAInfo, @DigiFinanceCRC, Treasury and all industry partners! pic.twitter.com/0wvNrMechi
— diliprao (@diliprao) May 29, 2023

Australia’s CBDC pilot is examining 14 possible use cases. Rao said the report on those tests — yet to be released — will narrow down which would deserve further exploration.

“You don’t necessarily need a CBDC in every use case,” he said. He added “people have to see value” in a CBDC if it's to be widely adopted.

Another hurdle for a CBDC, at least in Australia, would be the required legislative changes that need public backing.

For such changes to make it through parliament “politicians have to come on board,” said Rao, which would require a wide amount of public consultation.

Such consultation would focus on solving the “problems that people want solved,” according to Rao. “No politician is gonna do something that will lose votes," he added.

“You have to go through [...] Solving those problems, whether with technology or with legislation to make sure that people were comfortable with what you were doing.”

Magazine: Crypto City guide to Sydney: More than just a ‘token’ bridge

Crypto debanking could drive industry underground: Australia Treasury

June 29, 2023 Coin Telegraph

AML

The Australian government is addressing the risks of cutting banking services to crypto exchanges amid flurry of banks restricting certain services over scams.

The growing trend of cutting services to cryptocurrency companies in Australia could lead to undesired consequences like making the industry less transparent, according to the state.

Australia's Treasury on 28 June published an official statement addressing potential policy responses on debanking in Australia. Debanking occurs when a bank declines to provide services to a customer citing issues like Anti-Money Laundering (AML), sanctions compliance, reputational risk considerations and others, the authority noted.

According to the Treasury, there is a clear lack of data on debanking practices in Australia, which makes it challenging to design effective policy responses. “The Government acknowledges the importance of insightful data to monitor any potential policy responses to de-banking,” the statement reads. The authority added:

“The Government recognises the seriousness of de-banking and understands that inaction on the issue will stifle competition and innovation in the financial services sector and may drive businesses underground and to operate exclusively in cash.”

Among four issued policy responses on debanking, Australia's Treasury mentioned digital currency exchanges. The authority specifically advised Australia’s four major banks — Commonwealth Bank of Australia (CBA), Westpac, ANZ Group and National Australia Bank — to publish guidance applicable to crypto exchanges.

The Treasury stressed that it has encouraged the banks to publish data on their requirements and risk tolerance of crypto services providers, the document reads.

“The Government expects banks to communicate their requirements to both existing and potential customers clearly and proactively prior to refusing or withdrawing banking services,” Australia's Treasury wrote. The state will also work closely with regulators, banks and the affected sectors to ensure that the implementation of the “agreed upon recommendations is effective and achievable.”

Australia's Treasury moves to protect the local crypto industry came soon after CBA, the largest Australian bank, said in early June that it would restrict certain payments to crypto exchanges over scam risks. Previously, Westpac also banned customers from transacting with Binance crypto exchange in mid-May.

Australia is currently hosting a major blockchain and cryptocurrency event called Blockchain Australia. On June 26, the conference had a panel featuring executives from all “Big Four” banks in Australia, with execs providing their reasoning for shutting down services to crypto exchanges.

The Australian Big4 banks @CommBank @NAB @ANZ_AU on what they’re doing in blockchain - carbon credits, illiquid and private markets is where it’s at - though concern over lack of regulatory clarity

Excellent moderating by @MikeBacina #web3 #BW2023 pic.twitter.com/94k3QPPgn7
— alysesue.eth (@alysesue) June 26, 2023

“One in three of the dollars that are scammed from Australians touch crypto, one in three. So it’s the single largest lever that we have to reduce this impact on our customers,” CBA managing director of blockchain and digital assets Sophie Gilder said.

Magazine: Asia Express: Huobi sues … Huobi? 3AC rises from ashes, Korea crypto contagion

Binance Australia got 12 hours’ notice before it was debanked, says exec

June 27, 2023 Coin Telegraph

Australia

Binance Australia head Ben Rose claimed the exchange got less than a day's warning from its payments partner before it was "cut off" from the local banking system in May.

In the middle of the night, Binance Australia’s team was suddenly told it would be “cut off” from Australia’s banking system. There was no prior warning, consultation or redress, the exchange’s regional manager Ben Rose has claimed.

On May 18, Binance Australian announced its dollar services were suspended after its payments provider Zepto was told to stop support for Binance from Cuscal — Zepto’s partner banking and payments provider.

Rose told an audience at the Australian Blockchain Week on June 26 that the move impacted around 1 million customers based in Australia.

“We received 24 hours' notice of debanking at 11:30 pm in the evening, that was later turned into 12 hours, and so we had our banking cut off.”

“The reasons given were not entirely clear and didn't look that great in the media,” said Rose. Previously, a Cuscal spokesperson declined to comment on Binance Australia-related matters to Cointelegraph but did point to crypto-related “scams and fraud.”

The limited information initially worried Binance customers but “that tone changed pretty quickly” when it became clear it was the wider local crypto industry “impacted by these banking changes,” Rose said.

The same day Cuscal offboarded Binance, “Big Four” bank Westpac said it would begin trials that block payments to crypto exchanges. Less than a month later Commonwealth Bank, another major Australian bank, started similar crypto-related payment blocks.

Speaking to Cointelegraph after his on-stage interview, Rose declined to provide any extra information about Binance Australia’s search for an alternate third-party payments provider as discussions were ongoing.

Rose said there are other providers but admitted that Cuscal “bank the majority of this industry.”

Australia’s crypto industry has long relied on crypto-friendly payments providers including Monoova, Zai and Zepto — all of who are partnered with Cuscal to access the local banking system.

Cuscal-backed payment rails are used by Binance’s peer crypto exchanges including BTC Markets, Kraken Australia, CoinJar, Independent Reserve and many other crypto-related fintech firms.

On stage, Rose claimed losing access to their banking partner “hasn't had a real impact on the business.” He added Binance users are “using other methods,” likely the purchases and deposits to bank cards that are still supported on the platform.

He stressed the need to work with regulators and the banking sector and the possibility of implementing “sensible licensing” for the industry.

“We would call for Australia to move relatively quickly because jurisdictions all around the world are now moving forward," Rose said.

"We have a window as a country and we think there's an opportunity, but there's also a risk if we don't move on licensing relatively quickly.”

Crypto City guide to Sydney: More than just a ‘token’ bridge

Australia’s crypto laws risk being outpaced by emerging markets: Think tank

June 20, 2023 Coin Telegraph

adc forum

Bermuda and Nigeria are moving faster on crypto than Australia, and the land Down Under will soon “need to be up to speed,” says Loretta Joseph.

The Australian government needs to quicken its pace in developing crypto regulation or risk falling behind developing markets, according to the chair of a new crypto think tank.

Loretta Joseph, chair of the Australian Digital Financial Standards Advisory Council (ADFSAC) — the newly launched policy institute under the ADC Forum — warned Cointelegraph that the country risks falling behind others when it comes to developing regulations.

Earlier this year, Australia’s Treasury ran consultations for its “token mapping” exercise to help classify different crypto assets. A paper consulting on possible licensing framework is expected in mid-2023, while roundtables on crypto licenses are expected to take place in the third quarter. There’s also a private bill to expedite crypto regulation.

Consultation open! Today we released the token mapping consultation paper. This consultation is part of a multi step reform agenda to develop an appropriate regulatory setting for the #crypto sector. Read paper & submit views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
— Australian Treasury (@Treasury_AU) February 2, 2023

However, Joseph warned that the pace of regulatory development in the country is still too slow.

“When I go and I see countries that I work in like Bermuda, Mauritius and Nigeria move faster than my own country, that really upsets me,” Joseph said, noting the impact decentralized technology has on “bettering people's lives globally.”

Bermuda has signaled its support for a regulated crypto industry, while Mauritius and Nigeria have been involved in regulating or policymaking for their local industries in more recent years.

“We're still trying to figure out how to do a token mapping exercise or write legislation around Bitcoin or Ethereum. We need to be up to speed.”

Much of the crypto ecosystem in Australia can’t be covered using existing legislation, said Joseph and the country needs to “have a think about” either updating or adopting new laws in order to “grow and foster innovation.”

The Most Crypto-Friendly Jurisdictions in 2023

1. El Salvador
2. Hongkong
3. Singapore
4. Portugal
5. Estonia
6. Switzerland
7. UAE
8. Malta
9. Luxemburg
10. Bermuda

However, most countries are still in the process of developing legislation to regulate the industry. #iweb3 pic.twitter.com/Ey3ZSj0zFy
— ram (@rrmadityapu) June 18, 2023

Joseph said she’s been involved writing crypto policy and legislation since around 2017, helping Bermuda write its laws on digital currency businesses it passed in 2018.

She saw the need to set up ADFSAC to bring together the industry, academia, policymakers and government, adding she’s “never been able to write a piece of legislation without the input of everybody at the table.”

“It's think tanks that are very important to get the dialogue discussed,” she added.

“Everybody needs to be at the table at the same time, because if we're not, we're not going to get this right.”

Education on crypto will also be a key part of the new institute. “Give me a phone. Let me download you a wallet. Let's see how easy this is to use and then we'll discuss why you don't like it,” Joseph said.

As for what policy direction Australia should take, Joseph thinks it should align with “the global standard setters” naming international financial regulators such as the International Organization of Securities Commissions, the Financial Action Task Force and the Financial Stability Board.

The governmental G7 and G20 forums will start to enforce crypto rules “very soon,” Joseph believes, and those companies looking to jurisdictions with low regulatory hurdles “won’t survive in the future.”

“You want to go and set up in a jurisdiction that gives you legal clarity as a company,” she said.

Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

What will Binance Australia services look like after debanking?

June 1, 2023 Coin Telegraph

Australia

Binance suspended fiat on- and off-ramps by bank transfers in Australia, as well as trading for Australian dollar (AUD) pairs.

Binance users in Australia now have a narrowed pool of options to purchase cryptocurrencies amid the ongoing global debanking of crypto businesses. Since 5:00 p.m. local time on June 1, fiat on-ramps and off-ramps by bank transfers have been halted in Australia. The suspension includes trading for Australian dollar (AUD) pairs.

The shutdown of deposits and withdrawals is tied to previous developments impacting Binance in Australia. In February, Binance's local derivatives arm abruptly notified its users that certain positions and accounts would be closed for those who didn't meet the requirements to be considered wholesale investors.

Fellow Binancians,

We regret to inform you that AUD deposits and withdrawals by bank transfer are no longer available to Binance users in Australia. Binance has ceased all AUD trading pairs as of June 1. In order to facilitate withdrawals and trading activities after June 1, you…
— Binance Australia (@Binance_AUS) June 1, 2023

Under the law, a wholesale investor is an experienced investor with the capital to invest in high-quality assets, which usually entails higher risks. This type of investor may also be called an institutional or accredited investor. To be classified as a wholesale investor in Australia, one should have net assets of at least $2.5 million or an annual gross income of at least $250,000.

After Binance winded down non-compliant accounts, local regulators launched a "targeted review" of the exchange's local derivatives operations. On April 6, the Australian securities regulator canceled the Binance Australia Derivatives license.

A few weeks later, in May, Binance Australia announced it had suspended AUD services after its local payment services provider Zepto was instructed to do so, ceasing all deposits and bank transfer withdrawals.

At that time, a spokesperson from Zepto told Cointelegraph that its partner Cuscal instructed the company to "offboard Binance." In a separate statement, Cuscal said it was only "protecting Australians from financial crimes and scams."

Since then, Binance Australia has been seeking a payment provider. In the United States, Binance.US faced a similar challenge as former partners Silvergate and Signature Bank were shut down amid the banking crisis earlier this year.

"We are working hard to find an alternative provider to continue offering AUD deposits and withdrawals to our users," a spokesperson from Binance told Cointelegraph in a statement, adding that users in the country can still buy and sell crypto using credit or debit cards and peer-to-peer trading continues to operate as usual. Additionally, AUD balances remaining in accounts have been converted to Tether (USDT).

The ongoing cross-border debanking of crypto firms has prompted Binance CEO Changpeng "CZ" Zhao to consider buying a bank, he revealed during an interview.

Although some have warned risks still exist, Australian-based cryptocurrency exchanges have lined up to mitigate contagion fears following the recent events. “That is reflective of the regulatory environment that we operate in or in this case, the absence of a regulatory environment,” noted BTC Markets CEO Caroline Bowler.

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Australia asks if ‘high-risk’ AI should be banned in surprise consultation

June 1, 2023 Coin Telegraph

The Australian government suddenly announced a new eight-week consultation to ask how heavily it should police the AI sector.

The Australian government has announced a sudden eight-week consultation that will seek to understand whether any “high-risk” artificial intelligence tools should be banned.

Other regions, including the United States, the European Union and China, have also launched measures to understand and potentially mitigate risks associated with rapid AI development in recent months.

On June 1, Industry and Science Minister Ed Husic announced the release of two papers — a discussion paper on “Safe and Responsible AI in Australia” and a report on generative AI from the National Science and Technology Council.

The papers came alongside a consultation that will run until July 26.

The government is wanting feedback on how to support the “safe and responsible use of AI” and discusses if it should take either voluntary approaches such as ethical frameworks, if specific regulation is needed or undertake a mix of both approaches.

*A map of options for potential AI governance with a spectrum from “voluntary” to “regulatory.” Source: Department of Industry, Science and Resources*

A question in the consultation directly asks, “whether any high-risk AI applications or technologies should be banned completely?” and what criteria should be used to identify such AI tools that should be banned.

A draft risk matrix for AI models was included for feedback in the comprehensive discussion paper. While only to provide examples it categorized AI in self-driving cars as “high risk” while a generative AI tool used for a purpose such as creating medical patient records was considered “medium risk.”

#AI is already part of our lives. As the technology develops, we need to ensure it meets Australians’ expectations of responsible use. Be part of the @IndustryGovAu discussion, below. https://t.co/Gz11JCXlsG
— Australia's Chief Scientist (@ScienceChiefAu) June 1, 2023

Highlighted in the paper was the “positive” AI use in the medical, engineering and legal industries but also its “harmful” uses such as deepfake tools, use in creating fake news and cases where AI bots had encouraged self-harm.

The bias of AI models and “hallucinations” — nonsensical or false information generated by AI’s — were also brought up as issues.

The discussion paper claims AI adoption is “relatively low” in the country as it has “low levels of public trust.” It also pointed to AI regulation in other jurisdictions and Italy’s temporary ban on ChatGPT.

Meanwhile, the National Science and Technology Council report said that Australia has some advantageous AI capabilities in robotics and computer vision, but its “core fundamental capacity in [large language models] and related areas is relatively weak,” and added:

“The concentration of generative AI resources within a small number of large multinational and primarily US-based technology companies poses potentials [sic] risks to Australia.”

The report further discussed global AI regulation, gave examples of generative AI models, and opined they “will likely impact everything from banking and finance to public services, education and creative industries.”

AI Eye: 25K traders bet on ChatGPT’s stock picks, AI sucks at dice throws, and more

Bitcoin selling for $5K cheaper on Binance Australia as fiat ramp closes

May 30, 2023 Coin Telegraph

Bitcoin selling for K cheaper on Binance Australia as fiat ramp closes

AUD

One Bitcoin can be bought for the equivalent of $22,000 on Binance Australia if paid using Australian dollars. The problem is getting the funds there.

Bitcoin (BTC) is trading hands at a hefty discount on the Australian branch of the Binance crypto exchange, with the price of Bitcoin down as much as 21% if traded against the Australian dollar.

The move comes as traders rush to cash out their crypto holdings into Australian dollars before the door for local bank withdrawals closes in a few days.

On May 18, Binance Australia informed users that it is suspending Australian dollar services after a decision by its third-party payments provider.

Deposits via bank transfer were halted immediately, while withdrawals using the PayID service are set to remain open until June 1 at 5 pm local time. The exchange has also warned its Australian clients that any Australian dollars remaining on the exchange after May 31 would be automatically converted into USDT.

The announcements have since caused a progressive rush to cash out, causing BTC prices to become heavily discounted.

At the time of publication, one BTC can be purchased for only 33,750 Australian dollars, equating to around $21,987, or 21% lower than the global spot rate.

*BTC/AUD rate on May 30. Source: Binance Australia*

Those hoping to capitalize on the cheaper Bitcoin may be disappointed, however.

Without the ability to deposit Australian dollars into the trading wallet and hefty premiums for converting other crypto assets into Australian dollars, users may find it difficult to get their hands on the discounted BTC.

*AUD/USDT trading pair. Source: Binance Australia*

Binance has also warned of the delisting of several crypto trading pairs with Australian dollars on June 1 and for users to “pay attention to the risks when trading.”

Meanwhile, Binance said it is continuing to look for an alternate provider to continue offering Australian dollar deposits and withdrawals. Currently, the ability to buy and sell crypto using credit or debit cards is still available, though these rates appear to be in line with the market.

While AUD deposits by bank transfers are no longer available to Binance users in Australia, there are still several ways Aussie users can deposit onto the exchange.

- Credit or debit card
- Use P2P to buy and sell crypto
- Third Party Payment

Details: https://t.co/DSRhaebEfS pic.twitter.com/dQSKfJXYHK
— Binance Australia (@Binance_AUS) May 27, 2023

Binance has been in hot water with regulators down under as its derivatives license was canceled by the Australian Securities and Investments Commission last month. It is also facing a massive investigation by the U.S. Commodities and Futures Trading Commission.

Aussie crypto broker Swyftx, which relied on Binance for its liquidity needs, h previously stated that the severing of Binance’s Australian dollar on/off-ramps would not affect its own operations.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Australian stock exchange officially abandons blockchain plans: Report

May 19, 2023 Coin Telegraph

Australia

ASX abandons blockchain rebuild to explore conventional options to achieve the desired business outcomes as it sends RFP to potential software vendors.

Australia's stock market operator has decided to abandon its plans of rebuilding its software platform using blockchain technology, marking a significant rejection of the once-celebrated concept that gained prominence through its association with cryptocurrencies.

The Australian Securities Exchange (ASX) caused frustration among market participants in November when it decided to "pause" the rebuild of its comprehensive trading, settlement and clearing software based on decentralized computing. An external review concluded that after seven years of development, significant rework was necessary.

Following the initial pause, the company has indicated that it is exploring alternatives for a new attempt to rebuild its 30-year-old software. However, during a meeting with participants on May 17, it was reported that the company stated it would not incorporate blockchain or any related distributed ledger technology (DLT).

When asked about the approach for the next attempt, Tim Whiteley, the exchange project director, stated during the meeting that while they are exploring all options, they will likely need to use a more conventional technology instead of DLT or blockchain to achieve the desired business outcomes.

The statement indicates the conclusion of a project that was expected to showcase one of the most notable examples of a concept aimed at expediting online transactions through secure processing across multiple locations.

ASX was posed to be the world’s first securities exchange to adopt blockchain technology in the operation of its core services in partnership with the New York-based contractor Digital Asset, who is providing the technology. ASX bought a small stake in Digital Asset after hiring it to rebuild its software in 2016.

During the meeting, Whiteley informed participants that ASX was progressing towards finalizing a new strategy by the end of the year. He mentioned that the company had sent a request for information to potential software vendors and had also issued a request for proposal (RFP) to vendors who expressed a more positive interest, seeking more comprehensive feedback.

ASX received feedback from market participants expressing their preference for a less risky approach, avoiding a sudden transition to new software on a single date. Whiteley acknowledged that this feedback has been considered in the implementation planning process.

Magazine: Australia’s world-leading crypto laws are at the crossroads: The inside story

Australia

Binance Australia got 12 hours’ notice before it was debanked, exec says

Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving

MicroStrategy buys $347 million worth of Bitcoin amid market thaw

Bitfinex launches P2P trading platform in Venezuela, Argentina and Colombia

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