Raiz is an Australian micro-investment startup that plans on offering Bitcoin funds to its customers. The Company had to fight for a long time to do this but according to the startup’s statement, they have just cleared the last legal hurdle with the Australian Securities and Investment Commission, the country’s financial watchdog agency.
Australia is quite strict when it comes to bitcoin funds and want to make sure that all the security measures are in place and that the companies are fully aligned with the existing regulations to avoid any crypto-related crime of criminal financing through crypto funds.
Australia’s cryptocurrency journey
Australia has been trying to find the right balance between regulations and offering freedom to crypto funds to ensure the security of everyone involved but to let the industry thrive and ring about positive changes in the country as well it seems like Raiz has done a good job making sure that their fund is mistake-proof and can be trusted with the assets. Raiz is a fintech startup and has over 300,000 registered accounts.
As mentioned above the startup focuses on micro-investments and does so by rounding up the spare change from the user’s purchases to invest it somewhere profitably, which in most cases is an investment product, making up the exchange-traded funds.
Now it seems like Raiz has finally overcome the final challenge of introducing bitcoin into the funding and can now offer its users to invest in cryptocurrencies.
The startup has been working hard for a while for the right to include Bitcoin in its offering and according to the reports obtained relief from ASIC just recently and will begin the new year with confidence to introduce these changes to the general public.
Cryptocurrency is becoming a popular payment method
Bitcoin is becoming more mainstream in Australia and more and more services are accepting payment in cryptocurrencies helping the innovation to become more convenient for people to use.
Online casinos were one of the first businesses to start accepting crypto payments and since then we’ve seen the resurgence of exclusively bitcoin-oriented casinos or separate sections on websites that offer exclusively bitcoin-based games.
These games were made popular by casino bonuses and promotions that offer very tempting perks that are easy to access and offer immediate payout. Online casinos helped to introduce bitcoin to money players and continue to promote it as a viable payment method.
Bitcoin has faced quite a few challenges already in Australia and worldwide but seeing people have become familiar with this technology so soon it has become apparent to the officials that there is definitely a need for these services worldwide.
What Raiz fund means for Australian crypto scene
As mentioned above Australia’s regulations have a history of taking too many precautions that in the end would block the industry from developing at all.
Decentralized currencies and ledgers lose their appeal if the government keeps a continuous tight grip on them.
While the country was realizing that the opportunities that would come with allowing the technology to thrive by adapting regulations, Australia decided to change its approach in the middle of 2019.
In May they introduced a very detailed guide to the updates regulations that covered the limitations around miners, exchanges and initial coin offering projects.
The most important change that came out of this update was the highlighted importance of registering any fund or cryptocurrency business under the necessary licensing and the importance of adhering to the country Anti-Money Laundering and Know Your Customer regulations. Australia has been very vocal about the danger of cryptocurrency usage that funds terrorism by obfuscating the financial activity and has since stayed away to their strict stance against allowing any inconsistencies when it comes to regulations.
Some Australian authorities remain skeptical of cryptocurrencies and highlight its unpredictable nature and the dangers that come with innovative payment technologies like this. This is why it was so important that Raiz got the licensing to operate crypto fund. But it doesn’t mean that the newly introduced fund will be without its limitations.
Raiz Bitcoin retail fund will only allocate five percent to Bitcoin exposure while the rest will go towards EFTs. Right now Raiz has 445 million Australian dollars ($305 million) in funds while getting income from 211,000 customers.