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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.

Huge Bitcoin Hash Rate In China In Jeopardy After Local Authorities Increase Electricity Tariffs For Mining By 33%

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Bitcoin miners in Inner Mongolia can no longer enjoy subsidized electricity rates for their crypto-mining operations, according to chinese news outlet Weixin. The authorities insist that mining companies have not directly benefited the wider Mongolian regions and local government. And now a large number of Chinese miners operating within the border of Inner Mongolia, electricity charges may rise by 33 percent.

This action comes as a blow to Bitcoin miners as around 60 percent of the world’s mining operations are based in China. In addition to some large-scale companies, such as AntPool, which are known for the high-income revenues they generate each year, they are based in the region in question.

China’s colossal Bitcoin hash rate share to drop following the move by local authorities

China controls a vast 60% hash rate on all Bitcoin mining operations in the world but all that is about to change following increased electricity tariffs policy in the Mongolia region. For a long time, the northern part of China has enjoyed favourable conditions conducive for bitcoin mining such as cool climate, cheap labour and subsidized electricity rates.

Bigwig firms like AntPool along with other miners based in Mongolia are likely to be affected negatively, thus resulting in decreased profits generated from mining operations. According to reports, at least 21 mining farms will be affected directly. However, it is worth noting that not all firms have been affected by the authorities’ move.

China inner Mongolia authorities issued the ‘surprise’ notice on 24 Aug 2020. Colin Wu, a famous Chinese reporter who mostly focuses on mining and industry regulations reports, also confirmed the news on his official twitter page.

Crypto mining enthusiasts fear that more regions will follow the policy of the Mongolian authorities

Bitcoin Miners in China are now worried that increased electricity rates directive in Mongolia will now be imposed on other different regions in the country. Xinjiang region is more precisely tipped to be next to offer the instructions after Mongolia.A lot of mining operations will also take a hit in terms of profits generated as the rest of the world now enjoys a more level playing field.