Blockchain Bites: CoinJar Launches Australia’s First Encrypted Card With Mastercard; The crypto bill aims to disrupt the US regulatory landscape; Independent Reserve obtains first in-principle license approval in Singapore

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CoinJar launches Australia’s first encrypted card with Mastercard

Mastercard has beaten Visa in the fist to launch Australia’s first crypto card with the CoinJar crypto exchange. In a recent press release, via CoinJar’s sister site, Cryptonews, it was reported that the CoinJar card is now available both physically and digitally through the integration of Google and Apple Pay.

Fortunately, this announcement follows a few recent questions about when Australia would launch this type of product.

We also understand that an alternative offer follows this launch, as Visa said it would only take a month (September) before Visa launches its own encrypted card with Australian start-up CryptoSpend.

Describing this new payment method as instant and secure, CoinJar explains that the first “Australian-born” crypto card works just like any other Mastercard. “The CoinJar card allows you to spend your crypto like cash, both online and in stores,” its website boasts.

The CoinJar card allows you to use your CoinJar’s cryptocurrency to make purchases, anywhere Mastercard is accepted. All you have to do is choose the crypto you want to spend and it will automatically convert to Australian dollars when you make a transaction – no need to preload.

With the CoinJar card supporting up to 30 different cryptocurrencies and offering a 1% conversion rate – the said crypto exchange will be returned to customers through an internal rewards program, this new product is certainly great news. offer for Australian crypto innovators.

Visa and Mastercard already have live initiatives in the United States that allow crypto start-ups to bring crypto-related cards and payment mechanisms to crypto innovators for an easier way to spend. their money. It is likely that we will soon see additional competition in this space.

It’s great to see Australia responding to growing consumer demands for the ability to spend their crypto through simple means.

Proposed “Crypto Bill” Aims to Shake Up the US Regulatory Landscape

The Digital Asset Market Structure and Investor Protection Act (Bill), introduced by Representative Don Beyer, proposes sweeping digital asset reforms in the United States, a big leap from a already phased approach we’ve seen in digital asset regulation in the United States.

A key feature of the new bill is a strong position on Stablecoins (digital assets pegged to a fiat currency such as AUD or USD). The bill would give the US Treasury Department not only oversight over the development of stablecoins, but also a veto over coins that do not meet their requirements, which could result in the effective banning of many stablecoins. .

Interestingly, there also appears to be an authorization in the bill for the Federal Reserve to create a central bank digital currency (CBDC). A CBDC has been the subject of discussion for some time in the United States, but the combination of legislation allowing the creation of a United States CBDC and a veto right over any other United States CBDCs may suggest that the United States – United are seeking to establish their place as the sole issuer of an American CBDC.

Companies looking to issue a stablecoin in the United States, or companies that already operate an existing stablecoin will need to apply to the Treasury Department for approval to use stablecoins. The Treasury will then need to consult with the Securities and Exchange Commission (SEC), the Commodity Future Trading Commission (CFTC), the Federal Reserve and / or foreign entities before approving the proposal. This should be a key consideration for developing entities, and those already circulating, US denominated stablecoins.

The bill also takes a big step forward towards regulatory clarity by moving towards defining digital asset terminology and also delineating certain attributes of digital assets within the purview of the SEC or CFTC.

If passed, a definition of “digital asset securities” will be created to fall under the control of the SEC. Tokens that provide holders with equity, profits, dividend payments, interest or voting rights, or tokens issued through an initial coin offering (ICO) will fall under this definition and therefore fall under the jurisdiction of the DRY.

Under the bill, tokens required to register with SEC oversight can file a “unsecure certificate” certifying that a digital asset does not contain the characteristics of a security that would have the effect of requiring the SEC to examine the token and, if no objection is lifted, the tokens would be deemed not to be securities. This is a rather elegant solution to the problem of regulators refusing to confirm when certain assets are not securities.

The bill would require cryptocurrencies outside the jurisdiction of the SEC to come under the jurisdiction of the CFTC with Bitcoin, Ether, and their hardforks already considered commodities.

Finally, the bill seeks to address long-standing privacy concerns regarding decentralized finance (DeFi) by forcing various US agencies to submit recommendations to Congress regarding anonymity. The Financial Crimes Enforcement Network (FinCEN) will enact rules that govern: anonymity services, monetary rules and convertible currency transactions with enhanced anonymity.

While DeFi is not explicitly regulated by the bill, it requires the SEC, CTFC, Federal Reserve, and Treasury to review potential regulatory guidance and provide recommendations.

This bill should be considered by all digital asset operators in the United States. The radical changes, and in some cases retrospective changes, could very well change existing practices and the regulation of projects already in place.

Independent Reserve obtains first in-principle license approval in Singapore

In early 2020, the progress Singapore regulators made in the digital asset space caught the attention of one of Australia’s oldest and most trusted digital asset exchanges, Independent Reserve. This was the catalyst for their expansion into Singapore, which has now paid off with the recent announcement that Independent Reserve has obtained the first approval in principle to operate as a regulated digital payment token (DPT) service provider. in Singapore.

The Monetary Authority of Singapore (MAS) has received more than 150 requests from service providers, two of which were rejected, 30 were withdrawn and the Independent Reserve is now the first to receive the coveted approval in principle. Adrian Przelozny, CEO of Independent Reserve, said:

Being one of the first cryptocurrency exchanges to be notified by MAS of our license approval in principle is a reflection of the robustness of the policies, procedures and risk management systems we have in place to guide our day-to-day operations. . .

This follows rapid succession after the Independent Reserve announced its score for Singapore, assessing the city-state’s awareness, adoption, confidence and confidence in the digital currency at a promising rate of 63 out of 100. Independent Reserve explains:

A score of 100 indicates maximum awareness, optimism, confidence, and adoption of the cryptocurrency. A score of 0 indicates complete ignorance of cryptocurrency and blockchain technology, and that no one has heard of Bitcoin.

In 2020 Australia scored a not-quite-satisfactory score of 47/100 and this latest result again shows Singapore’s leadership in awareness and adoption in the digital asset space. Independent Reserve claims that MAS’s responsive regulation raises Singapore’s score, which matches our postings on recent regulatory changes and support for regulated digital asset services, including digital asset custody services.

Singapore’s approach underscores the value for companies providing digital asset services to have a clear legal framework and certainty from regulators. Australia is in a state of regulatory flow / opportunity with Senate submissions and ASIC consultations underway and significant funding entering the digital asset research space. It is not too late for Australia to catch up, however, emphasis must be placed on the need for government and regulators to provide transparent and accessible approvals and clear guidance on what can and cannot cannot be done by digital asset service providers. It seems to us that custody is an excellent starting point.

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