Labor will provide fintechs based in Perth with more regulatory...

Labor will provide fintechs based in Perth with more regulatory support, pledging an increase in funding for the corporate regulator so it can extend its "innovation hub" to the city and help start-ups connect with the Asian region.
Shadow minister for the digital economy Ed Husic and Clare O'Neil, shadow minister for financial services, will announce on Thursday that Labor will fund a new Australian Securities and Investments Commission executive based in Perth to work on fintech licensing and start-up regulation. This will mean founders don't need to trek to the east coast for meetings.
"The commitment we are making to establish an ASIC rep on the ground in Perth might sound modest but it's so important for the firms based in WA," Mr Husic said. "This position will ensure WA can strengthen its position as a regional fintech hub."
Perth has a fledgling but growing fintech, crypto and blockchain scene. Projects include the Australian National Blockchain, a collaboration between Herbert Smith Freehills and Data 61. Energy trading start-up Power Ledger, the ASX-listed initial coin offering adviser DigitalX and Pin Payments are also based in the WA capital.
Perth has recently been connected to Singapore via new submarine cables that provide very low latency computer connections between Australia and Asia, which could assist fintechs seeking to expand into the Asian region.


Forced to move east

The city also has growing expertise in the internet of things (IOT) due to significant investments made by the mining industry in automation and sensors.
Much of the local activity is based in co-working spaces run by Spacecubed, including Flux and The Vault at Riff, at Tank Stream Labs, and at IQX, the new innovation quarter at the University of Western Australia.
But several Perth-based fintechs have been forced to move east. One example is Simply Wall Street, an investment visualisation system originally set up in Perth but now based out of Sydney.
"In talking with WA-based fintechs I was stunned to hear how many were thinking of moving to the east coast simply because they lacked regulatory support in Perth. We think it's vital to keep smart firms in WA," Mr Husic said.
Alex Cook, an adjunct Lecturer at the University of Western Australia law school said the state's resource-dominated industry has a mature approach to technology and the start-up community "is punching far above its weight, but the missing piece was easy access to our nation's regulators."
Natasha Blycha, the blockchain lead at Herbert Smith Freehills, said WA has an increasing focus on regulation of technology. "Our energy, resource and infrastructure companies lead the charge in their use of IOT, data, AI and automation of their processes. WA also gets the benefit of proximity to sophisticated fintech markets in Asia."
Ben Heap, founding partner of H2 Ventures, said Labor's support for regulators in Perth showed its support of fintech as a national market. "Founders in Adelaide and Brisbane are able to access the Sydney and Melbourne fintech ecosystem but for emerging founders in Perth that's more challenging geographically," he said. "So the Opposition's commitment to support those founders is a sensible recognition that the fintech opportunity is national one and not just about the east coast."