I'd like to offer you some details concerning our progress. We have been working with the Australian Securities and Investments Commission and the Australian Taxation office concerning our plans to issue an Ethereum Smart Contract ("BBILLER") to enable contributors to earn rewards for their contribution to the platform.
The plan for the ("BBILLER") contract gives token holders these rights (Associated Rights)
• Make proposals
• Vote on Proposals
• Make at least a single contribution to the open source platform to receive a reward from income received by the company from the sale of ("BILL")
The Australian Taxation office (ATO) have advised us that BBILLER (The token for contributors) and BILL (The supply chain token) are not currencies but an Asset and therefore GST and company income tax is applicable. GST is only applicable to persons in Australia who are not exempt. However, we are of the view that income received from the sale of ("BBILLER") tokens is capital contributed by active members and such members shall be known as stakeholders and not shareholders. Income from the sale of ("BILL") tokens would be subject to GST and income tax. We are also of the view that ("BILL") tokens are in fact a consumable and not designed for trading as an asset, although this is possible in a second-hand market.
We will seek a private binding ruling on this matter in due course. Tokens are not money as per the definition provided for by the ATO.
In order to progress the platform development further, we have been working on developing a wallet service for the storage, transfer and withdrawal of crypto-currencies. As a result of this process we have been required to become registered with http://www.austrac.gov.au/ as a money remitter. Our application has been successful and we are required to report all transactions greater than $10,000.00AUD to them.
In order to fulfil our obligations under the law concerning the purchase of our Tokens, we have needed to include Anti-money Laundering and Know Your Customer (AML/KYC) logic into our smart contracts.
In addition to our discussions with Australian Securities and Investments Commission (ASIC), we have formed the view that bBiller Pty Ltd is not a managed investments scheme and has not created a financial product that requires any approvals or regulations under Corporations Law including regulations concerning the applicability of financial services or credit legislation. We also believe that our products would pass the Howey test which is used by the U.S. Securities and Exchange Commission (SEC).
You may like to refer to my article in this magazine (Page 60), https://issuu.com/icocrowd/docs/ico_crowd_magazine__issue_one__sept/42
In consideration of our current token sale whereby anyone can purchase ("BBILLER") tokens, we have had no objection from ASIC, having been referred by them to this post by their Chairman, Mr Greg Medcraft.
To further distinguish the future bBiller Initial Coin Offer (ICO) and future viability of the company, we have decided to remove the $150,000 Minimal Viable Product threshold we sought to meet. The purpose of this threshold was to return funds to token holders were the minimum was not met. The reason for this decision is quite simple. bBiller has been approached by a number of client organisations to provide them with services around structuring ICO's and have commissioned us to develop software for their supply chain needs on top of our wallet service and on top of our early designs for UBL (universal Business Language) Smart Contracts, the (“BILL”) token. In essence bBiller is self-funding its minimum viable product through operations prior to having raised any money via the ICO process. Pre-sales of tokens have got us this far. Purchases of our pre-sale tokens will receive their BBILLER tokens once we have:
1. Restructured the ICO in accordance with our findings above
2. Re-written the base Ethereum Smart Contract to account for changes
3. Loaded our new wallet service into the Internet.
We anticipate that more tokens will need to be issued to raise capital in the ICO. This means that token holders will be topped up with additional tokens so they are not diluted.
In other developments we have identified over 180 stakeholders and will commence briefing them as funds become available. Several new faces have expressed interest in assisting us with the ICO and I'll provide you an update in due course.
bBiller Pty Ltd