Australian crypto-currency company Bitcoin Group has issued an announcement detailing its plans to get listed on the Australian Stock Exchange (ASX) in the middle of November. If it happens, the move will make the firm the first publicly traded company related to cryptocurrencies.
Just recently, the Australian Tax Office (ATO) issued a positive guidance on the handling digital currencies, which prompted the Bitcoin Group’s CEO Sam Lee to state “Recognition through ATO’s guidance is a huge step towards legitimacy of our industry. We look forward to providing the highest level of transparency to the industry by listing on the ASX.”
The company is currently managing an arbitrage fund named Bitcoins Reserve, and aims to raise A$20 million at A$0.2 a share. The profits which the company makes are coming from discrepancies across different exchanges.
The industry surrounding the digital currency has been quite a risky venture,e especially in light of recent sharp drops in Bitcoin prices.
Back in August, the ATO proclaimed that Bitcoin is an “intangible asset”, which is not a currency and transactions with it a subject to tax on the AUD value of those.
According to Mr. Lee, “How the ATO envisages taxing bitcoin is by far the most, all encompassing and flexible in the world.”
What to Look for in a Forex Technology Provider?Go to article >>
“Australia is more advanced than the US and listing on the main board of the ASX will help legitimise, not only ourselves, but the industry as well,” he added.
Bitcoin Group stressed that its strategy of managing an arbitrage fund was short term and as more market-makers became involved, returns would shrink.
“This space might be niche at the moment, but it doesn’t look like it’s going to be niche in the long run,” said Mr Lee.
The company’s prospectus will be lodged with the Australian Securities and Investments Commission on October 22, and the offer will open on October 29.
“In all industries that resemble the Wild West there are some bad players, every new industry goes through that, whether it be the internet in the early days or the introduction of search engines,” Mr Lee said.
CEO of Bitcoins Reserve and Bitcoin Group Sam Lee said that, “The main revenue model of Bitcoin Group is through “mining”, which is a process of verifying transactions between users, effectively acting as a clearing house. This work done is rewarded with newly unlocked Bitcoins that can then be sold for other currencies on the open market.”
“We manage risk through operating a vertically integrated mining business with the financial and strategic backing of all major players in the Bitcoin Mining industry. We believe we are well priced and positioned to help investors profit in what still is the most profitable segment within the Bitcoin ecosystem,” he added.