Raiz Set To Offer BTC Fund Options
Raiz is a micro-investment startup based in Australia. On January 20, it was reported by the Australian Financial Review (AFR) that the startup is ready to provide its users with Bitcoin (BTC) fund options. Raiz has been able to clear the last legal barrier with Australia’s financial monitoring agency known as the Australian Securities and Investment Commission (ASIC).
Three hundred thousand users are registered with the firm to enjoy its micro-investment services. As with Acorns based in the U.S. and other global startups, Raiz “rounds up” the spare change from the users’ purchases for investment in some investment products, typically made up of exchange-traded funds (ETFs).
As explained by AFR sources, the firm has been trying to add Bitcoin to its offering, and reports have it that ASIC approved the operation of the fund. The approval appears to be the last legal barrier, leading to implementation within the first six months of this year.
It was noted that the planned Bitcoin retail fund is for allocating five percent to direct Bitcoin exposure, while the rest is made up of ETFs. Last month, the firm had 445 million AUD in funds under management from 211,000 paying customers.
Before now, regulators were careful about cryptos. According to a report in May 2019, regulators published comprehensive guidelines for miners, exchanges and initial coin offering projects. The regulators maintained the need for crypto businesses to apply for every relevant license and to comply with its Anti-Money Laundering and Know Your Customer regulations.
Some government representatives are still unconvinced when it comes to digital currencies. The argument in a study released by the Central Bank of Australia says that it is not likely for cryptocurrencies to take over the AUD, highlighting usability and scalability worries.
Two months ago, the country’s Minister of Home Affairs warned about the facilitation of terrorism by cryptocurrencies through the obfuscation of financial activities.
Featured image courtesy of Shutterstock. Source: Cryptopress.