financemagnates.com
Crypto.com has enhanced its presence in Australia with its latest acquisition of Fintek Securities, a brokerage service and trading company holding an Australian Financial Services (AFS) licence.
Announced today (Thursday), the acquisition of the Australian Securities and Investments Commission-regulated company will allow the cryptocurrency company to offer deposit products, derivatives, securities, foreign exchange, managed investment schemes, and other products.
Upcoming Product Details Remain Unknown
Although Crypto.com highlighted that the upcoming products in Australia will be available only to “eligible users,” it did not define the target group. The details of the launch of the new services and products have yet to be revealed.
While offering services to Australians, the exchange must define the target market properly, which is mandatory under the existing Design and Distribution Obligations. The local regulator, ASIC, also took action against multiple trading platforms. Last August, an Australian federal court, as well as the local operator of Kraken, another crypto exchange, noted violations of local rules related to offering fiat-based margin trading products to local customers.
“The path of the Crypto.com roadmap is to expand our offering ambitiously by providing customers with the most comprehensive set of financial services, and this acquisition is the latest step in that direction,” said Kris Marszalek, CEO of Crypto.com. “The goal is to create one destination for all financial services where users can simplify their experience and maximise rewards.”
Crypto.com’s Expansion Continues
The acquisition, which cements Crypto.com’s presence in Australia, came only over a month after it acquired United States-based Watchdog Capital, a Securities and Exchange Commission-registered broker-dealer. That acquisition enabled the crypto exchange to offer equities and equity options to “eligible” traders in the US.
Interestingly, Crypto.com also secured an Australian licence with the acquisition of The Card Group in late 2020. However, the crypto platform has since removed the announcement of that acquisition from its website, signalling a possible issue with the deal.