The changes considered by the Australian Securities Exchange (ASX) to its listing regulations could potentially lead to early-stage technology startups including bitcoin and Fintech companies being blocked from listing on Australia’s primary securities exchange.
The ASX is notable for its endeavor to explore and implement blockchain technology as its post-trade clearing and settlement solution, replacing its legacy system for increased efficiency at lowered costs. Having invested in New York-based blockchain startup Digital Asset, the ASX will see the financial blockchain solutions provider develop a distributed ledger for its operations.
Ironically, new and early-stage blockchain startups with the potential for innovation such as that developed by Digital Asset, within in Australia could soon be persuaded to look elsewhere for opportunities, if certain changes are enforced by the ASX.
Under new admission laws that are being considered by the ASX and the corporate regulator, early-stage companies with limited revenue streams could be blocked from listing on the ASX. The changes being weighed up come despite the fact that 45% of the 105 tech companies floated on the ASX have had revenues of less than $1 million, each.
Any changes that discourage new and growing technology companies from listing would be “disappointing”, said Zhenya Tsvetnenko, founder of Bitcoin and blockchain technology startup DigitalX, a company listed on the ASX. He opined that “stringent processes” were already being enforced by the ASX to ensure that no “bad” companies were eligible to listed.
Speaking to the Australian Financial Review about the newly proposed “draconian measures”, as he put it, he stated: The listing of DigitalX which started with no revenue has enabled it to grow and transition from a bitcoin mining to a potentially world-changing remittance company, pioneering the blockchain. We posted a half-yearly revenue of more than $US18 million from our bitcoin liquidity provision activities. Tsvetnenko makes […]
