tl;dr
Crypto.com has acquired Fintek Securities, a regulated Australian brokerage and trading firm, giving it access to Fintek’s Australian Financial Services Licence. This allows Crypto.com to offer various financial products to Australian users. The acquisition reflects the trend in the crypto industry ...
Crypto.com has acquired Fintek Securities, a regulated Australian brokerage and trading firm, giving it access to Fintek’s Australian Financial Services Licence. This allows Crypto.com to offer various financial products to Australian users. The acquisition reflects the trend in the crypto industry of companies pursuing acquisitions to enter markets and gain regulated status without going through the licensing process.
Australia's crypto regulation is still in early stages, with limited guidance as regulators balance innovation and consumer protection. Regulatory efforts have included token mapping consultations, tightening anti-money laundering laws, and enhancing oversight of digital asset exchanges. Comprehensive legislation is yet to be enacted. Crypto.com plans to release more information about the acquisition in the coming weeks.
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.
"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.
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.
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.