Barter currency traders shut down

Three agents of offshore internet currency exchange businesses have been shut down by the Australian Securities and Investments Commission (ASIC) after they were found to be illegally operating their respective currency bartering schemes in Australia.

The trio, which ran internet sites that converted conventional currencies to electronic currencies and vice-versa with claims of allowing consumers to more efficiency invest money around the world, were operating without an Australian Financial Services Licence (AFSL).

The companies, Stevens IT, Sydney Gold Sales, and Fountainhead Management, have all voluntarily ceased to trade and withdrawn their websites following the ASIC investigation.

Their respective websites, www.goldex.net; www.sydneygoldsales.com; and www.ozzigold.com, all now display ‘closed until further notice’ signs.

The sites operated by charging consumers a commission for their services, according to the regulator.

ASIC executive director of enforcement Jan Redfern described the ‘e-currencies’ available as privately issued currencies that are used to trade goods and services on the internet.

“These products can be defined as non-cash payment systems, and people who deal in them with Australian consumers must therefore hold an AFSL,” she said.

ASIC has also issued a general warning to consumers to exercise caution in using existing offshore electronic currency trading websites, most of which claim to be backed by gold bullion in allocated storage.

Such offshore companies ASIC warns on includes ‘e-gold Inc’, based in the small West Indies country of Nevis, which issues the most common available e’currency - ‘e-gold’.

Other companies mentioned are Pecunix, GoldMoney, and EVOCash.