Ann: Response to ASX Query Letter, page-129

Hi Scott. Glad you have invested in ISX. It’s a tough company for many to understand. Those challenges for investors also applied to Facebook, Google, Microsoft, Amazon etc for the majority of investors who were more comfortable investing in banks, airlines and car manufacturers. Regular investors couldn’t even identify the differences between Pet.com and Yahoo etc etc but because they were big at the time, people invested in them because it somehow made more sense to them.

Anyways...

Let’s all just agree that Australia has pretty sh*t tech companies. You have Afterpay as a layby widget. Kogan that has been coined by the media as Australia’s version of Amazon. Are you kidding me. I met Kogan when he was starting out back when I was in the start up scene and they weren’t listed yet. His uses “data” as his main source for growth. But it ain’t no Amazon killer.

I’m learning everyday on HC how much investors don’t know the tech side of a company and how complex things are when you innovate from the ground up. Coding is a lot harder than selling stuff online like Kogan or building a BNPL widget. We are lacking behind because we understand mining and banks companies more but not tech companies and people value tech companies not on their tech but on their share price.

Anyways sorry for the rant.

This is is my theory with what might be happening when you account for all the behind scenes of ASIC, ASX and Scott Morrison’s plans to position Australia as a technology company.

Following policy trends in the UK, US, Europe, China, Singapore, Israel and the Far East. They have shown a lot of progress when dealing with FinTech companies.

My theory is ASIC and ASX and AUSTRAC are accelerating their learning and understanding of FinTech business models as they realise they are years behind other countries. And the reason they haven’t done this earlier is because Australia sucks at innovation. We didn’t have enough companies earning any real revenue. My guess is that ISX is the only profitable FinTech company with crazy potential that will be a massive concern for ASIC and ASX to get on top of because investors don’t understand all these new terms when they report.

Plus how do you regulate FinTechs when their business models is so foreign to Aussie regulators. ASIC has admitted that they are still in the learning phase and are willing to adjust rules to allow them to scale. There are multiple media releases and speeches on YouTube by FinTech senators explaining their lack of knowledge of FinTechs.

In another post I’ll attach screenshots of what other countries are doing after they went down the road of over regulating FinTech companies.