ASX-listed crypto exchange wannabe Byte Power Group defends finances

Byte previously said it will make money by charging sellers a 1 per cent trading fee and buyers a 0.5 per cent fee on all trades. But traders using Byte Power X loyalty tokens would receive a 40 per cent discount on commissions.

Byte has already issued 15.6 million BPX Tokens to investors in Australia and Singapore since July ahead of its exchange launch.

However, the Australian Securities and Investment Commission has questioned the legal status of the tokens, suggesting they could constitute a managed investment scheme, and be subject to higher standards of public disclosure and additional licensing requirements.

Byte said on Friday it was confident it was on the right side of the law.

“Byte Power had ceased its voluntary suspension on the offer of the BPX Tokens until it received legal advice.

“Having now received this advice, BPG has resumed the sale of the BPX Tokens and is currently considering what, if any, steps are to be taken by BPG to address ASIC’s concerns about the legal status of the BPX Tokens.”

Byte’s problems aren’t limited to ASIC’s fears around the legal status of its BPX tokens. In early 2018, Byte became embroiled in a dispute with Singaporean developer Soar Labs over $6.7 million of cryptocurrency.

Byte settled a suit with Soar in June last year, with no admission of liability. But the ASX queried why Byte hadn’t received any of the cash due to it under the settlement by the proposed date of November 24. Byte claims that it has now received the promised $US232,323 ($332,053). But rather than receiving cash, the settlement was in Ripple coins – another cryptocurrency. Byte says that those Ripple coins have since been sold for $274,899.97.

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