Bitcoin struggles in Australia even as BlinkTrade enters Africa with UbuntuBitx

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In frontier Bitcoin use, Australia is currently up against new Tax Office Guidelines. Disappointingly, the Australian Tax Office guidelines are in-line with Singapore’s January-release of taxing guidelines.

Australia in a 4-page guideline said,

“The ATO’s view is that Bitcoin is neither money nor a foreign currency, and the supply of Bitcoin is not a financial supply for goods and services tax (GST) purposes. Bitcoin is however an asset for capital gains tax (CGT) purposes.”

Meanwhile, bitcoins enter new markets

New York-based BlinkTrade, has just launched its West African exchange for bitcoins with the UbuntuBitx. Earlier this week it launched another exchange specifically for another continent, SurBitcoin in Venezuela.

Team head Rodrigo Souza, of BlinkTrade explained that,

“My mission statement is very simple: let’s lower the costs for bitcoin exchanges, using an open-source, cloud-based platform for exchanges like BlinkTrade, and also allow bitcoin exchanges to share liquidity.”

Blinktrade will continue to provide technology support whereby companies can cost effectively start own bitcoin exchanges without requiring help of developer. Souza explained that Blink Trade would not hold any of the user’s bitcoins or fiat money. The brokers will continue to hold custody, while they publish other bitcoin addresses as one of the transparency measures.

Souza also shared that the challenges in Venezuela were demanding, and “If we can succeed in Venezuela, we can succeed in any country of the world.”

It includes regulatory restrictions, where trades in other currencies, which are outside of the central bank are disallowed. Therefore, Souza explained. “So, it is very important for us that Venezuelan authority does not rule that bitcoin is a currency, because it is not.”

On the need for bitcoin exchange in Africa is to counter the micro-remittances, high fees, explaining that, “You send $100 to West Africa, and the other person there will get $90. If we establish a market there with low fees, bitcoin can thrive in the micro-remittances market. For larger remittances you need more liquidity.”

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com