Australia’s Byte Power Addresses ASX Concerns over Planned ICO

Diversified technology solutions provider BPG has answered questions raised by the Australian Securities Exchange with regard to a planned $15 million ICO.

The Australian Securities Exchange (ASX) has initiated a probe into Byte Power Group (BPG), which is seeking to raise $15 million via an initial coin offering (ICO) for the launch of a cryptocurrency exchange. Addressing the regulator’s concerns, the public technology solutions provider revealed on Wednesday details of its plans.

Announcing its intended token sale on July 19, BPG said it aimed to issue a total of 1 billion Byte Power X Loyalty Tokens (BPX). The company also revealed at the time it planned to sell 25% of the amount to private investors at a price of $0.06 per unit. The remaining 75% will be allocated for “pre-registered users of the exchange, company special releases, pre-opening and future marketing drive.”

On Wednesday, BPG provided further details about its planned ICO, answering a total of 17 questions raised by the ASX on August 1. Among the regulator’s concerns were the compliance of the fundraising with ASX listing rules and the legal backing of the project. Based on legal advice it had obtained, BPG replied that the tokens are not classified as securities and should not be regulated as a financial product under Australia’s Corporations Act.

However, BPG acknowledged that it has to register as a reporting authority with the Australian Transaction Reports and Analysis Centre (AUSTRAC). The company also pledged to adopt an anti-money laundering (AML) and know-your-customer (KYC) policy.

BPG further revealed it had already started selling the BPX tokens to private investors in Australia and Singapore, with a plan to roll out the offering in Hong Kong.

Regarding the stage of development of its Byte Power X — the first crypto exchange to be launched in Australia via funds raised from an ICO — BPG said work on the platform continues, and an update of the estimated timeline will be provided to the ASX. While it remains unclear which cryptocurrencies will be supported, the exchange disclosed that an Australian dollar float account and a US dollar float account would be held in the name of Byte Power X. As for fees, BPG said it would charge sellers 1% and buyers 0.5%.