Australian Bitcoin companies are on the brink of collapse as calls for stricter regulation grow

Chinanews.com, April 13 (Xinhua) -- According to a report by Australia.com on April 13, South Australian Bitcoin company Igot is on the verge of collapse, leaving many Australian investors unable to recover their investments. For this reason, industry insiders are calling for more appropriate regulation of the Bitcoin industry.

Igot, which helps investors buy and sell bitcoin, has been unable to deliver bitcoins or refund investors for months, according to reports . Akram Bekzada, who was born in Egypt, started investing in Igot in 2014. He has been trying to get his investment back since October last year, but has so far received nothing.

But Rick Day, the founder of Igot from New York, did not admit that the company was bankrupt and claimed that he would return the investment to investors.

As the Igot scandal continues to unfold, regulator the Australian Securities and Investments Commission (ASIC) has said it can do nothing about it because Bitcoin is not recognised as a financial product or service. However, ASIC has also said it will investigate if Igot goes bankrupt.

As a result, the Bitcoin community is facing growing calls for stricter regulation, and even industry insiders are calling on some companies to leave the industry.

David Temple, co-founder of Melbourne Bitcoin Agency, said more appropriate regulation would bring Australia's bitcoin industry closer to the levels of the United States and Europe.

Temple said, "Bitcoin is also a kind of wealth, so the government must try its best to regulate it. I know no one can clearly know what form stricter regulation will take or how much effort it will take, but we certainly hope that more appropriate regulation will happen."

Adrian Przelozny, CEO of bitcoin exchange Independent Reserve, also said the Igot case demonstrated the lack of formal regulation in the bitcoin industry.