Australian banking and financial markets veteran Brian Phelps has been named head of the Command Ridge Virtual Asset Authority (CRVAA), a new regulator focused on overseeing digital assets, including crypto.
Approved by the Nauruan government in June, the CRVAA will enforce cybersecurity standards, monitoring virtual asset transactions and ensuring compliance with global anti-money laundering and financial transparency regulations.
The authority will also offer a licensing framework for virtual asset service providers to register and operate from Nauru.
In an email to the Investing News Network from the Republic of Nauru, President David Adeang said Phelps’ appointment brings “integrity and impact” to the regulator’s foundation, citing his deep industry expertise.
For 21 years, Phelps served as general manager, broking and markets at CommSec, the largest online stockbroking firm in Australia and a subsidiary of the Commonwealth Bank.
“We must be innovative in our quest for economic resilience and a higher standard of living for our people, while prioritising international best practices and the highest levels of governance and compliance,” Adeang added.
“This ensures investors and foreign platforms can have great trust in Nauru.”
Commenting on the role, Phelps said that CRVAA can assist in reshaping and strengthening Nauru’s economy.
“This can create sustainability for future generations of Nauruans,” he added, saying that the benefits of the regulator will go beyond virtual assets.
Bitcoin price boom
A day after the announcement of Phelps’ appointment, Bitcoin recorded a new record price of AU$175,000, putting the value of one coin equal to a small property in selected parts of Australia.
In a report by Mortgage Choice, Shane Oliver, AMP’s head of investment strategy and chief economist, explained that Bitcoin has been moving in waves since 2009, generating new popularity every time it hits a new high
“If you line them up, Bitcoin looks like it’s hanging on a particular role as a store of value. It’s just different, property as an investment provides rental income for a yield, and that helps you to assess the value of that property,” he said.
“We’ve got a shortage of housing in Australia, and population is growing. We struggle to keep up with demand and we’ll see ongoing capital growth over years ahead so you can see where it all fits in.”
This past May, Australian judge Michael O’ Connell ruled that Bitcoin is “comparable” to Australian dollars.
The ruling discussed that Bitcoin should be exempt from the capital gains tax, saying that it is more similar to Australian dollars than it is to gold or shares.
Danger or opportunity?
While opportunities keep opening for cryptocurrencies such as Bitcoin, there are still risks.
That’s especially true for uneducated users — on July 14, a report by DigWatch revealed that elderly Australians fell victim to crypto ATM scams amounting to over AU$2.5 million losses.
According to the report, local police said that people from Tasmania lost the said amount in total after being manipulated into depositing large amounts of cash into crypto ATMs. False promises of returns, fake romance and impersonation of authorities were cited as scam methods, with 65 year olds as the average victims.
Australia said that regulators are responding, with cash limits now imposed on crypto ATM transactions.
On Saturday (July 19), Investing.com published a review of the crypto space so far in 202, predicting that in the next few weeks, Bitcoin may break a new all-time high and art NFTs may see a rise in interest again.
“From a macroeconomic perspective, monetary policy remains supportive, though global easing may be nearing its peak,” the report reads. “Central banks continue cutting rates but at a slower pace. Major banks like the ECB are expected to probably keep easing, just more gradually.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
