Bitcoin News: Is Australia the Ideal Location for a Bitcoin Exchange

A new bitcoin exchange launched yesterday in Sydney, Australia, with an aim to improving general consumer confidence in the digital currency market. Called Independent Reserve, the exchange is promoting both itself and its Australian base as secure and well-regulated, saying the country’s AAA credit rating and political stability made it the ideal place to locate.

It will aim first at the local and New Zealand markets before expanding overseas to the financial centers of Asia, though says it already has the ability to electronically verify customers in minutes from over 20 countries by working with identity specialists Global Data Company.

Adrian Przelozny, Independent Reserve’s co-founder and chief technology officer, told that the company has been in regular contact with local financial regulator the Australian Securities and Investments Commission (ASIC) and would adhere to all KYC and AML compliance protocols.

He said: “We’re very comfortable that we have the right settings here to ensure its safety and success.”

News on Bitcoins

A recent ruling by the Australian Tax Office on digital currency use was met with concern from the local bitcoin community, who said the definition of those currencies as akin to barter transactions and not ‘money’ or ‘financial supply’ would lead to the 10% Goods and Services Tax (GST, or sales tax) being applied twice – once when purchasing bitcoins and again when using them to purchase other goods.

Australia’s international reputation as a stable business and legal environment, and financial services center, could serve digital currency companies well when attracting overseas customers.

It recently called a Senate Inquiry into bitcoin and digital currency use, which has increased confidence in the country’s ability to take a sensible approach toward regulation.

Bitcoin Financial News

While the market in Australia is relatively small compared to North America and Europe, bitcoin brokerages such as CoinJar, Bit Trade Australia and igot have performed well in the local market and payment processors such as BitPOS (as well as CoinJar) are working hard to build a local digital currency-using economy.

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