ASIC's executive director of enforcement, Jan Redfern, said the regulator had acted after investigating three Australian-based businesses operating currency trading Web sites or acting as agents for similar businesses based overseas.
The businesses -- Stevens IT Pty Ltd, Sydney Gold Sales and Fountainhead Management had cooperated with ASIC and shut down their Web sites voluntarily, Redfern said.
She cautioned local businesses to be careful about dealing in unregulated overseas-based financial products and said consumers needed to be discerning about the financial products available via the Internet.
"If a business isn't properly registered with an Australian financial services licence, then customers can't be sure about the quality of the product or advice they are receiving. Remember, offering financial advice or products without a licence is illegal," she said.
Electronic currencies are privately issued currencies used to trade goods and services on the Internet. The issuers of the currencies -- the most common of which is e-gold -- are based offshore.
Regulation of e-gold, by the Australian or some other national government, might enhance public perception and serve as an effective (albeit cynical) promotional strategy. In terms of reality though it would be rather silly since the e-gold currency balance sheet http://www.e-gold.com/examiner.html is already stronger (and more transparent) than that of any financial institution, regulated or no, anywhere in the world. e-gold is not a "financial institution". Unlike a bank, central bank, mutual fund or even the unallocated liabilities of the Perth Mint, there are no financial assets (loans, securities) backing e-gold. e-gold is backed 100%, gram for gram, with physical gold in appropriate custodial arrangements. e-gold is designed from the ground up to eliminate default risk and assure finality of settlement of transfers. No other payment system enables a recipient to accept instantaneous payment from anywhere in the world , even if the payer happens to be a total deadbeat or unbanked altogether, with certainty that the payment is good and final.
Dr. Douglas Jackson
Founder and Chairman, e-gold Ltd.
www.e-gold.com
CEO, OmniPay
www.omnipay.com