May 2017

PROMOTING BLOCKCHAIN INNOVATION IN AUSTRALIA

In This Edition

- CEO's MESSAGE: Qu Kuai Lian - China sets the pace in blockchain innovation

- Australian Delegation to Consensus Blockchain Conference in New York
 
- Removal of Double-Taxation on Digital Currency Transactions
 
- State Government of Victoria joins ADCCA

- Blockchain for Finance Conference: Singapore, June 20-21
 
- New ADCCA Members: Computershare and Victorian Department of Economic      
  Development
 


Nick Giurietto

CEO's Message

Qu Kuai Lian - China sets the pace in blockchain innovation

Forget about blockchain. The words to learn if you believe that distributed ledger technology will transform our world are "qu kuai lian".
 
Thanks to some determined network building and the invaluable assistance of Austrade, I recently attended the China Blockchain Technology and Industrial Development Forum in Hangzhou.  We were the only foreigners in a room of 300 or so. This 'second-tier' city of only 8 million people is investing $40M in a Blockchain Training and Innovation Centre with the goal of creating a hub for the development and commercialisation of blockchain technology. Shangai, Shenzen, Beijing and Chongqing - just to name a few - have similar ambitions.
 
Chinese corporates are investing heavily in blockchain solutions.  Well known brands such as AliBaba, Baidu and Wangxiang Group along with companies almost unknown in the west such as the Pingan Insurance Group  - with only 300,000 employees - all have blockchain-based products in commercial pilot.
 
And the start-up sector is thriving too.  One start-up I met has already put more than $6M through its new trade finance platform in the 2 months since launch.  The CEO modestly explained that that amount is still less than 1% of the market he is after. Such hungry entrepreneurs are not hard to find. At the conference I attended, over 40 teams of university students competed in a hackathon with the winners taking away a prize of almost $A100,000!
 

Nicholas Giurietto and Austrade Senior Trade Commissioner Susan Corbisiero meet with Mr Li Ming, Director of the Blockchain Research Institute, China Electronics Standardisation Institute
All this activity is strongly supported by the Chinese government. The Ministry for Industry and Information Technology has identified some 72 priority use cases and has already published blockchain standards and reference architecture.  Meanwhile, the People's Bank of China has announced its commitment to develop a digital yuan.
 
Connecting the pieces
 
The Chinese characters used to represent the word blockchain could be more literally translated as 'connecting pieces into groups'.
 
Unencumbered by legacy systems and traditional organisational roles, Chinese businesses and governments are using blockchain technology to connect the pieces of their economic system in new and more efficient ways. The project is nothing short of re-imagining their economic architecture.
 
The implications for Australia should be clear.  Firstly, we need to accelerate our own efforts at blockchain adoption.  There is no shortage of great ideas for blockchain solutions in Australia.  But unintended regulatory barriers and institutional conservatism too often mean these ideas are slow to take off. Secondly, we need to leverage our strengths as a mature market economy with sophisticated consumers and trusted regulators.  In trade finance and supply chains we can form partnerships with businesses in China and elsewhere to ensure we are bound in to the emerging global systems. And we can help test and improve innovative business models developed elsewhere as well as offer Australian solutions to a global market.
 
China is truly setting the pace in global blockchain adoption.  Closer partnerships with Chinese innovators can help Australia accelerate our own efforts as well as contribute to a key component of the emerging global ecosystem. 

Nicholas Giurietto
CEO and Managing Director
ADCCA

   

Australian delegation to Consensus Blockchain Conference in New York

  
Consensus 2017 is the largest blockchain conference in the world with some 3000 delegates attending the meeting which kicked off in New York today.

Australia is well represented by an official Australian delegation hosted by Austrade in collaboration with ADCCA.  The delegation is supported by Data 61 as well as the state governments of New South Wales and Victoria.

Australian blockchain innovators have the chance to showcase their capabilities both in the conference program as well as at the drop-in "Australia Lounge" which serves as a focus point for contacts with potential partners.

The 32 member Australian delegation includes representatives from:

- Australian Accounting Standards Board
- Australian Digital Currency & Commerce Association
- BitTrade
- AgriDigital
- Australia Post
- Blockchain Global
- Block 8 Technologies
- Blockchain Consulting Group
- Blockchain Centre
- Civic Ledger
- Deloitte
- Digital X
- Distributed Technologies Institute
- Global Internet Ventures
- KPMG
- ODMOB Lawyers
- Pacific Markets
- Pacifix
- PWC
- Coinloft
- RMIT
- TBS
- Veredictum


Members of the Australian Consensus Delegation at the launch event hosted by EY.




Removal of Double-Taxation on Digital Currency Transactions
Government acts to remove barrier to growth

 
 
Australia's Federal Budget released on May 9th included the welcome news that the double-taxation of digital currency payments will be removed from 1 July 2017.

At present, GST is payable on both the purchase of a digital currency as well as the use of a digital currency in a transaction to acquire goods and services. This effective double-taxation of a digital currency transaction has been a barrier to the growth of the digital currency sector.
 
This is an important reform that will support the faster growth of this innovative sector of the economy.  A similar change in Japan that took effect in April, immediately prompted the announcement by Japanese payments providers of substantial investments allowing over 250,000 Point of Sale terminals to accept digital currency payments by the end of this year.
 
Importantly, it is not only digital currency businesses that will benefit from this change but the wider blockchain innovation sector. Removal of the double application of GST supports the development of smart contracts and micro-payments that will underpin new business models using blockchain technology.
 
ADCCA Chairman, Ron Tucker, welcomed the changes. "The original reason that we formed ADCCA was to advocate for this much-needed change. Although, ADCCA has broadened its scope to encourage blockchain innovation more broadly, it is very pleasing to see that this first goal of our association will soon be achieved."
 
ADCCA has worked both formally and informally with Treasury officials to help build understanding of the digital currency and blockchain sector and to help formulate the best approach to implement this reform.

"This GST reform is a key outcome of constructive engagement with government across a number of areas to support the growth of blockchain businesses in Australia. ADCCA looks forward to further collaboration to boost Australia's competitiveness in this area even further." 
Nicholas Giurietto



Treasurer, Scott Morrison



The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for digital currency purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to GST.



Read more at https://www.gizmodo.com.au/2017/05/from-2017-bitcoin-and-other-digi

State Government of Victoria joins ADDCA

 
 
ADCCA's newest member is the Victorian Department of Economic Development, Jobs, Transport and Resources.

The partnership with ADCCA has been led by the Employment, Investment and Trade Group within the Department, which has responsibility for programs and services to grow the Victorian economy including through industry development, targeted investment and increasing exports.

In addition to membership, ADCCA and the Department of Economic Development will work together over coming months on a joint program to encourage blockchain innovation in Victoria.

One early area of co-operation was a meeting between Minister Phillip Dalidakis and the Zhejiang Fintech Association facilitated by ADCCA which explored potential areas of collaboration between blockchain innovators in this dynamic province of China and Victorian partners.

We look forward to the roll out of further programs over the year ahead.






Read more at https://www.gizmodo.com.au/2017/05/from-2017-bitcoin-and-other-digi


SPECIAL OFFER FOR ADCCA SUBSCRIBERS

Blockchain for Finance
Singapore, June 20 - 21, 2017


Commercialisation  of blockchain concepts is the key theme for the finance industry in 2017. Just how do successful POC's turn in to real solutions that help reduce costs, simplify reporting, reduce fraud and enhance the customer experience?

These are the questions that will be addressed at the Blockchain for Finance Conference
to be held in Singapore on June 20 and 21.

Highlights include:
 
  • Bank of Tokyo-Mitsubishi UFJ, China Construction Bank, Mizuho & OCBC Bank will set out their blockchain strategies helping you to understand the capability of this technology
  • The Monetary Authority of Singapore will review the Intellectual Property challenge and how the recent influx of patent filings may impact the wider financial services sector
  • Tackle the unknowns and business challenges associated with blockchain/DLT adoption with input from R3 to ensure all trepidations with this technology are properly addressed
  • Hear how Manulife, AIA & Allianz see blockchain playing a vital role in insurance and how a decentralised approach could help improve security and trust
 
PLUS hear from BNY Mellon, Deutsche Bank, Nordea Bank, Japan Exchange Group, Metaverse, Astri, Standards Australia and ACCESS to improve your blockchain strategy. 

Review the conference brochure here.

ADCCA subscribers receive a  10% discount on all delegate passes.  Please use the discount code ADCCA10 when booking your place.




NEW ADCCA MEMBERS

ADDCA welcomes two new members this month: Computershare and State Government of Victoria.



Computershare (ASX: CPU) is a global market leader in transfer agency and share registration, employee equity plans, mortgage servicing, proxy solicitation and stakeholder communications. We also specialise in corporate trust, bankruptcy, class action and a range of other diversified financial and governance services.

Founded in 1978, Computershare is renowned for its expertise in high integrity data management, high volume transaction processing and reconciliations, payments and stakeholder engagement. Many of the world's leading organisations use us to streamline and maximise the value of relationships with their investors, employees, creditors and customers.

Computershare is represented in all major financial markets and has over 16,000 employees worldwide.




The Department of Economic Development, Jobs, Transport and Resources  is the Victorian Government's lead agency for creating the conditions to sustainably develop the Victorian economy and grow employment.  The Department's role is to increase jobs, investment, exports and opportunities; stimulate innovation, competitiveness, and confidence; and support sustainability.

 
ADCCA Membership Inquiries

Please click on here to inquire about becoming a member of the ADCCA
 
Copyright © 2017 | ADCCA | All rights reserved.

Published by the Australian Digital Currency & Commerce Association 
Editor: Nicholas Giurietto
Publisher: Ronald M. Tucker


The ADCCA Industry Newsletter reaches a regular audience of over 1500+ Industry and Government Leaders, domestically and abroad. This reach includes regulators, parliamentarians, enterprise C-Level executives as well as cross-industry stakeholder participants both at the professional association and emerging FinTech business levels. To learn more about ADCCA or enquire as to Membership opportunities, please contact us via the below:

Our mailing address is:
The ADCCA
PO Box 21122 World Square
Sydney NSW 2002
AUSTRALIA



www.adcca.org.au   |   contact@adcca.org.au