Crypto.com said on Sunday it has acquired Fintek Securities, a local brokerage and trading firm regulated by the Australian Securities and Investments Commission (ASIC), as part of its expansion plans within the island nation.
The deal grants Crypto.com access to Fintek’s Australian Financial Services Licence, enabling the platform to offer deposit products, derivatives, securities, and managed investment schemes to its Australian users, according to a statement.
Fintek operates as a Contract for Difference (CFD) broker, providing trading services for foreign exchange, commodities, and indices.
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U.S.-based crypto exchange Kraken has launched a new suite of crypto derivatives products for Australian wholesale clients, aimed at aligning with regulatory standards following a recent legal challenge in the country. Kraken’s licensed broker offering will allow institutional clients to gain exposure to crypto price movements through futures derivatives without directly holding the underlying assets, the company confirmed to Decrypt on Sunday. The service includes multi-collateral support—fiat...
"While we recognize there is currently limited guidance on crypto regulation in this country, we are working very closely with the government and ASIC and doing what we can as a responsible local industry player," Vakul Talwar, Crypto.com's general manager for Australia, said.
Australia’s crypto regulation remains in its early stages, with limited guidance due to ongoing efforts by regulators to balance innovation with consumer protection and align with global standards.
Efforts to regulate crypto in the country have included introducing token mapping consultations, tightening anti-money laundering laws, and enhancing oversight of digital asset exchanges. However, comprehensive legislation has yet to be enacted.
Instead, companies are increasingly pursuing acquisitions to accelerate market entry and gain regulated status, bypassing the lengthy process of applying for licenses directly.
While details are sparse, Crypto.com said it will release more info in the coming weeks. A spokesperson for the exchange did not immediately return a request for comment.
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Australian crypto fund manager DigitalX plans to position itself as a "flag bearer" for digital assets, preparing for what it sees as the crypto industry's "mainstream moment" following major breakthroughs and global political shifts, particularly in the U.S. DigitalX said Thursday it is undergoing significant cost reductions for its operations, cutting $950,000 (US$614,000) in annualized costs through restructuring its funds management team. Its Bitcoin fund, meanwhile, has posted 99% in yearly...
This strategy is also the case with crypto industry mergers and acquisitions, which generally aim at expanding a company's operational capabilities without going through the licensing requirements from scratch.
Examples of this trend include Ripple's acquisition of Metaco, Securitize's acquisition of Onramp Invest, Coinbase's acquisition of One River Management, and most recently, Stripe's $1.1 billion acquisition of Bridge, a stablecoin payments platform.
Edited by Sebastian Sinclair
