The ASX has dipped again today.
The S&P/ASX200 dropped 21.10 points or 0.30% to 7,029.90 and crossing below its 20-day moving average at 4pm. Over the last five days, the index has gained 1.09%, but is virtually unchanged over the last year to date.
The bottom performing stocks at the time of writing were Fletcher Building Ltd and Megaport Ltd (ASX:MP1) down 8.87% and 4.59% respectively.
The tech sector was the main drag today, falling 2.63%.
Accounting fintech Xero dropped 2.99% to $114.49 while WiseTech Global Ltd shares were 2.22% lower at $62.04.
Afterpay owner Block Inc (NYSE:SQ) CDI, formerly Square (NYSE:SQ), had lost 4.97% to US$43.17.
On the flipside, Treasury Wines Estates Ltd was 0.48% higher to $11.50 despite earning a first strike from shareholders over board remuneration.
If the board receives a second strike at the next annual meeting in 2024, it could lead to a spill motion.
Shareholders were also unhappy with the re-election of director Antonia Korsanos, who received 22.37% no votes and the grant of performance rights to chief executive Tim Ford, which garnered 17.3% votes against.
Crypto exchanges to be regulated
News that crypto markets will be regulated has pleased the banking sector.
The Australian federal government has announced that cryptocurrency exchanges must now obtain a financial services licence issued by the corporate regulator. This move is part of a revamped framework designed to mitigate investment risks while concurrently fostering the development of the digital asset industry. The new regime will impose specific obligations on crypto exchanges, aiming to strike a balance between enhanced security for investors and the continued growth of the sector.
“Almost half of scammed funds are currently being channelled into crypto, the getaway vehicle of choice for scammers,” the Australian Banking Association (ABA) chief executive Anna Bligh said.
“Once the stolen money reaches a crypto exchange, it is virtually impossible to recover.”
Crypto exchanges managing assets exceeding A$5 million in total, or more than A$1,500 for any individual, will be obliged to acquire an Australian Financial Services Licence (AFSL). Issued by the Australian Securities and Investments Commission, the licence mandates that exchanges operate with honesty and fairness, manage conflicts of interest, and make requisite disclosures.
Additionally, they will be required to submit financial accounts and adhere to solvency and cash reserve stipulations. The new framework will also encompass regulations pertaining to asset custody.
BTC Markets CEO Carline Bowler has welcomed the change.
“At BTC Markets, we are pleased to have reached this key milestone. A positive progression for the crypto industry; a great next step for the Australian economy. Digital assets are so clearly the future of financial services. It is imperative the country keeps pace with our international peers, with a robust regulatory framework.
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“BTC Markets has long agitated for appropriate, proportional regulation of the crypto industry in Australia. This includes holding an AFSL under our sister company, BTCM Payments, since 2022. BTC Markets has actively engaged with the regulatory process locally and contributes to international submissions. We look forward to continuing the consultation process with government on this key legislation.
“We share the desire for widespread investor protections. Mirroring traditional financial products will give investors similar comforts when they trade crypto or other digital assets.
“BTC Markets has been built around traditional finance risk frameworks. We fully expect to be one of the first exchanges to qualify under the new framework.”
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