Trovio, a Singapore-based technology company, has confirmed it will no longer support the ‘digital tokens’ offered by the Perth Mint due to alleged breaches of Australian and US laws.
In 2019 the Perth Mint entered the cryptocurrency market with the release of the Perth Mint Gold Token (PMGT).
In a statement released in early March, Trovio announced it would begin an “orderly unwind with token holders”.
“Trovio (formerly InfiniGold), the issuer of PMGT, has recently made a decision to no longer support the smart contract due to several factors after a number of years in operation,” the statement reads.
“PMGT Holders will be able to trade out of their PMGT position against the PMGT market maker on the Australian Exchange Independent Reserve or redeem the tokens for the Perth Mint GoldPass certificates. Token holders that do not have access to an Independent Reserve or GoldPass account are requested to lodge a support ticket.”
Approximately 1,195 tokens have been issued since 2019, representing 1,195 ounces of gold – valued at $3.5 million and sold to customers in both Australia and the US.
Trovio referenced ‘GoldPass’ in its statement – an app offered by the Perth Mint where users can buy, sell, and trade gold via certificates. There are more than 26,000 active accounts; however, the future of this app is also in doubt.
Goldpass was launched in 2018 and offers users the opportunity to make transactions that are “100 per cent backed by physical Perth Mint gold with the weight and purity of every ounce guaranteed by the government of Western Australia”.
Registration only requires a driver’s licence, passport, and bank account. Investors can use the app to buy and sell physical gold and silver which can be converted to cash or physical metal.
A spokesperson for the Perth Mint told the ABC that future of the PMGT and GoldPass are yet to be determined.
“Since early last year, the Perth Mint has been in discussions with Trovio to exit the PMGT product. The details of the exit are yet to be finalised and therefore the PMGT product is still available,” the spokesperson said.
“The Perth Mint’s proposed exit will not make a material difference to the Perth Mint’s services.”
According to reporting by the ABC internal documents show that as of May last year the Perth Mint had plans to “fully terminate” the service by August 2023.
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