With the changes being made to the way Bitcoin is taxed in Australia, it appears as of the Australian Securities Exchange will be undergoing changes as well. If this would occur, the new guidelines will have an impact on Bitcoin companies listed on ASX in the future.
ASX Regulation Changes – Yay or Nay?
As is the case with any major regulatory decision to be made, there are those in favour and others who oppose these pending changes. Steve Baxter, one of many well-known tech investors in the world, feels the ASX needs to update its listing regulations, rather than stemming the flow of early-stage tech startups joining the exchange.
Unlike what most people would assume, however, Baxter is proposing to introduce fewer listing regulations, rather than more. Moreover, he is not aiming to prevent anyone from getting listed on ASX by any means, as he is a supporter of how the exchange has supported early-stage companies so far. But getting listed on the ASX is just one thing, as getting tech startups to the AU$1bn valuation is a different matter altogether.
The proposals made by the Australian Securities Exchange itself would – probably, yet not confirmed – introduce tighter financial thresholds, as well as bring changes to the breadth of shareholders registers. Some people feel these pending changes are great news for investors, as there is a growing number of tech companies listing with close to no revenue whatsoever.
While it certainly true tech enterprises and entrepreneurs should not see the ASX as a funding source, there is a growing interest in tech companies from investors. At the same time, there are a lot of investors who pull the trigger whenever they see a creative concept, even though not every startup and company will succeed.
TechnologyOne Chief Executive Adrian Di Marco stated:
“We’re getting to a point where valuations are getting heavy in the market and we could potentially see another dot com bust. These companies are being priced for their blue sky potential … Until you have a proven business model, it’s tough going onto the stock exchange, and it’s a recipe for disaster.”
If the ASX goes through with their own proposals, there will be an impact on Bitcoin companies looking to get listed. Tighter regulation would make it harder for startups and entrepreneurs to get on the Exchange, whereas fewer restrictions could be quite beneficial. Changes which discourage growing companies from listing is not the right way to go, and the current requirements should be sufficient to weed out ‘bad companies”.
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