[ANN] Australasian Bitcoin Bank/Credit Union /ADI & Ors.

[jubalix]

We are proposing to start a Australasian Bitcoin Bank/Credit union.

The essential thing is to obtain an Authorised Deposit-taking Institutions licence (ADIs).
see http://www.apra.gov.au/adi/Pages/default.aspx.

The China and Australian Banking debacles, as well as many other instance show that the interface between exchanges, BTC and FIAT is the issue that stands between BTC and the next level of uptake, and advantages BTC brings to the consumer in competition terms.

Having a Banking license/ADI is now the next way point in the BTC ecology. A Credit Union is an economical vehicle to achieve this.

At this point you can then open a gateway into the Banking system, world wide.

It will be part of our constitution that we will not close BTC accounts.

It is far more reliable to have a Banking institution with that written into its constitution than rely on policy changes. Accordingly it would take legislative change or revocation of the ADI license.

In the Australian context, credit union rarely, if ever close but go on to become Banks over time, usually by acquisition.

We may set up in New Zealand or Australia in the first instance depending on tax advice/legal implications. Hence Australasian moniker.

There are a few other innovations we have in hand. We reach out to the wider BTC community but particularly the BTC associations, and other interests such as the great Brisbane, Perth. Melbourne, Sydney, New Zealand  and other Meetups, CoinJar, Getbitcoin, BitTrade and all other BTC related interests. The latest NAB debacle with CoinJar should hopefully serve as a remider of this need.

We understand there was another entity attempting this and had purportedly been to APRA. However their actual goals and plans were easily locatable, and not much has been heard since of them. Please feel free to update ITT

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[jubalix]

What is a credit Union;

Credit unions, mutual building societies and mutual banks have a mutual structure and their first point of business is to focus on their members (customers). Anyone can join and become a member. Each member of a credit union, mutual building society and mutual bank owns the organisation they belong to, and have a vote in the organisation’s governance.

Unlike publicly-listed banks, credit unions, mutual building societies and mutual banks aren’t publicly-listed companies and so they don’t maximise profits to pay external shareholders. Instead, they put their profits back into outstanding customer service, better products, competitive mortgage rates and fairer, competitive pricing for their members.

Deposit guarantee
Deposits of up to $250,000 with credit unions, building societies and mutual banks were covered on a permanent basis by the Government guarantee from 1 February 2012.


How are they set up/regulated
Credit unions, building societies and mutual banks are Authorised Deposit-taking Institutions (ADIs) and are subject to the strongest regulatory framework in the financial sector.

ADIs are subject to close supervision by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959. All ADIs – banks, building societies and credit unions are subject to the same, strict, legally-enforceable prudential standards on capital, liquidity, risk management and governance.

In addition to their licence to carry out banking business, all credit unions, mutual building societies and mutual banks hold an Australian Financial Services Licence (AFSL) and are regulated by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. AFSL holders are subject to a range of licensing, conduct and disclosure obligations.

Credit unions, mutual banks and building societies are also subject to regulatory obligations under a range of laws, including:

    consumer credit law;
    the Privacy Act 1988;
    the Anti-Money Laundering and Counter-Terrorism Financing Act 2006;
    payments system regulation;
    the Electronic Funds Transfer Code of Conduct; and
    the Mutual Banking Code of Practice.

[securityguy]

One flaw you maybe missing in this is that any Bank/Credit Union requires an upstream bank to provide clearing/settlement.  Only the main banks can provide that and if they refuse to provide you settlement services due to associations with bitcoin then your bank/credit union is rendered useless.

[jubalix]

One flaw you maybe missing in this is that any Bank/Credit Union requires an upstream bank to provide clearing/settlement.  Only the main banks can provide that and if they refuse to provide you settlement services due to associations with bitcoin then your bank/credit union is rendered useless.

Sometimes yes you do need an Up stream Bank.

However the RBA/APRA/ASIC etc are unlikely to allow upstream banks to refuse services if they grant an ADI.

The Australian Govt and Legislation is committed to competition including financial competition. Banging deregulation has be happening since the 1960's or around then in various stages. Banks can not behave in an anti competitive manner. Denial of service to a licensed ADI would be anti competitive.

[doof]

Im in.  Ill forward on to a few people I know in the banking sector.