Crypto exchange Crypto.com has made a significant move by acquiring Australian brokerage and trading firm Fintek Securities. This acquisition will enable the platform to extend its offerings beyond cryptocurrencies by providing traditional financial products to users in Australia. Fintek holds an Australian Financial Services Licence and is regulated by the Australian Securities and Investments Commission (ASIC), ensuring compliance with local financial regulations.
With this purchase, Crypto.com can now facilitate equities trading on various Australian and international stock exchanges. The platforms will also diversify their offerings by including deposit products, derivatives, securities, foreign exchange trading, and managed investment schemes. This expansion positions Crypto.com to respond to the evolving needs of investors seeking both digital and traditional asset management.
The acquisition aligns with the company’s vision to bridge the gap between traditional finance and digital currency. By integrating generic brokerage capabilities, the exchange aims to provide users with a comprehensive investment experience, allowing them to manage multiple asset classes within a single framework. The anticipated services will include Contracts for Difference (CFDs) on various asset classes tailored for both retail and sophisticated investors.
Australia has seen an increasing acceptance of Bitcoin and other cryptocurrencies, although legal frameworks regarding these assets are still in the developmental stage. In August 2022, the Australian government initiated consultations with various industry stakeholders to create a regulatory framework for the crypto sector, which is ongoing. Recently, ASIC announced its intention to issue new guidance requiring crypto exchanges to secure financial services licenses.
In line with these developments, Crypto.com has been actively engaging with Australian authorities, advocating for clearer regulations for the industry. The exchange’s proactive approach underscores its commitment to fostering a responsible and compliant crypto trading environment in Australia. Additionally, Crypto.com cemented its position in the U.S. market by acquiring Watchdog Capital, a broker-dealer registered with the SEC, thus expanding its service offerings to include stocks and equity options for U.S.-based traders.
