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Legal Status of Byte Power X Loyalty Tokens

Update on BPX Token
Update on BPX Token
Brisbane, Nov 15, 2018 AEST (ABN Newswire) - On 19 July 2018, Byte Power Group Limited (ASX:BPG) (BPG) announced that it intended to undertake a token generation event for the Byte Power X Loyalty Token (BPX Tokens). BPX Tokens are utility tokens relating to the loyalty program which provides a discount on commissions for users of the Byte Power X Cryptocurrency Exchange (Exchange).

On 5 September 2018, BPG released a statement to the market responding to various queries from the Australian Securities Exchange regarding the BPX Tokens. The statement, among other things, confirmed that BPG had received legal advice that:

(a) the BPG Tokens are not financial products for the purposes of Chapter 7 of the Corporations Act 2001 (Cth) (Corporations Act);

(b) the offer of BPX Tokens does not constitute an offer to issue one or more securities (including shares in a body or interests in a managed investment scheme), or any other kind of financial product.

As at the date of this statement, BPG has sold 15,599,300 BPX Tokens to selected private investors in Singapore and Australia.

BPG has since become aware that the Australian Securities Investments Commission (ASIC) has concerns that the BPX Tokens may constitute interests in a managed investment scheme. BPG maintains the view (supported by its external legal advice) that the BPX Tokens are not interests in a managed investment scheme or any other type of financial product for the purposes of Chapter 7 of the Corporations Act.

However, if the BPX Tokens are determined to be interests in a managed investment scheme or any other type of financial product, BPG:

(a) would be required to obtain an Australian Financial Services licence (AFSL) in respect of the issuing of the BPX Tokens and the operation of the Exchange; and

(b) would be subject to the regulatory and compliance requirements applying to managed investment schemes in Chapters 5C and 7 of the Corporations Act, including the requirements relating to the registration of a managed investment scheme.

In response to ASIC's concerns, BPG has at this stage:

(a) suspended the offer of the BPX Tokens in Australia; and

(b) sought further legal advice.

BPG will continue to liaise with ASIC with the aim of addressing its concerns about the legal status of the BPX Tokens.


About Byte Power Group Limited

Byte Power Group Limited ASX BPGByte Power Group Limited (ASX:BPG) is a diversified technology solutions group with a particular emphasis on securing Asian business opportunities.

Through Wimobilize, the Group has a new cutting edge technology solution, a proprietary Advance Hybrid Artificial Intelligence Big Data Technology Platform consisting of 31 Advance Analysis Engines, 4 levels of Hybrid Correlation and Al Profiling Algorithms customised for governmental, healthcare, banking, telco and tourism industries. This proprietary Big Data technology platform elevated the AI Predictive Analysis and deep insight intelligence to a new paradigm, applicable to any market segment.

This Wimobilize Big Data technology powered e-commerce ecosystem will provide the next generation innovative trading platform for distributing the Company's Australian wine, organic honey and honeycomb.

 


Contact

Michael Wee
Company Secretary
Byte Power Group Limited
T: +61-7-3620-1688
www.bytepowergroup.com



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