The Australian Border Patrol plans to simplify cross-border trade with Singapore via blockchain. Testing of the system was launched this week.

According to the Australian Border Force, under the Australia-Singapore Digital Economy Agreement, blockchain-based application testing was launched this week to facilitate the exchange of trade documents.

The testing, which is carried out in cooperation with the Singapore Customs Authority and the Information Technology Development Authority (IMDA), aims to reduce administrative costs and improve trade efficiency between countries. 

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In particular, the capabilities of the digital verification platform will be tested in the intergovernmental registry of the Australian Border Service and on the TradeTrust IMDA platform for the exchange of electronic documents, including certificates of origin of products.

Border Force Commissioner Michael Outram said that this initiative will include trade without paperwork and the safe digital exchange of trade information to develop the future architecture and design of Australia's single-window trading system.

Testing reviews will be provided by businesses and regulators, including the Australian Chamber of Commerce and Industry, the Australian Industry Group, and Singapore's ANU Bank. According to the National Blockchain Development RoadMap, the Border Service will provide a plan to launch the system in 2021.

The Digital Economy Development Agreement between Australia and Singapore, signed by countries in August, sets the rules for reducing barriers to digital trade and building an infrastructure in which businesses and consumers can participate in the digitization of both economies.

Recall that recently the Australian Stock Exchange (ASX) postponed the launch of clearing and settlement system on the blockchain until April 2023 due to higher requirements for the platform than previously thought.

Australia and Singapore enjoy closer ties with each other, however, the coronavirus pandemic brought certain difficulties.

Blockchain companies rise notably in Singapore

Several Singaporean blockchain companies have created a "blockchain landscape map" where the number of blockchain-related firms in Singapore has increased by 50% compared to 2019.

The map was backed by the Singapore-based government agency Infocomm Media Development Authority (IMDA). In fact, it is a set of logos of companies working in the field of blockchain. The map highlights a variety of categories - from corporate services to smart cities, protocols, and infrastructure.

In 2020, the area of decentralized finance (DeFi) has become a significant development. This sector is growing rapidly around the world, and Singapore is no exception. Temasek, for example, was the first Asian organization to partner with the Libra Association. In addition, Singapore has seen an increase in the number of blockchain vacancies.

At the moment, there are 234 companies on the map, divided into 26 categories. Compared to 2019, the list of blockchain firms in Singapore has increased by 91 companies. During the year the number of such firms has grown by more than 50%.

In April, it was reported that the Tax Office of Singapore has no plans to levy taxes on free distributed crypto assets and coins that appeared as a result of forks. Other crypto assets are still subject to taxation.