Byte Power Group (BPG) Plans ICO For Opening Crypto Exchange But Faces New Regulatory Pressure
Byte Power Group (BPG) is located within the borders of Australia, and they are trying their hardest to establish the first local cryptocurrency exchange through an ICO. However, they seem to be stopped at multiple points, as the local legislators continue to put pressure on the company, concerning the future actions of the platform.
On August 1st, the Australian Securities Exchange (ASX) requested information on various areas of interest. This request for information brought up their concerns, including everything from the future operations that they engage in to the debate of whether BPX tokens are considered securities. It does not look like the BPG decided to respond until they make the fundraising efforts public.
Since they launched the ICO, they have expressed their goal to raise $15 million, which will be used to build up their platform even more. While they support the development, users will have the option to pay for any fees, much like the way that Binance does.
According to the legal advice that BPG sought out, BPG explained that the tokens they are issuing are absolutely “not financial products.” There are 17 queries brought up, but the statement should address all of them.
In a statement that was issued directly for the ASX, BPG said,
“The offer of BPX tokens does not constitute an offer to issue one or more securities […] derivatives or any other kind of financial product.”
In the response, BPG also discussed their knowledge that they much register as a reporting authority, under the Australian Transaction Reports and Analysis Centre (AUSTRAC). They also recognized their need to follow the Anti-Money Laundering/Know Your Customer (AML/KYC) protocols.
So far, the problematic regulatory space in Australia has make it hard for cryptocurrencies to survive in their hemisphere. Much of the problem seems to surround their taxation, which many consumers believe is unfairly based. Still, there is been many international exchanges that still are invested in the domestic market, with Huobi of China being one of the most recent additions in July.