Crypto.com has acquired Fintek Securities, an Australian brokerage and trading company, granting it access to provide traditional financial products, including equities and derivatives, to consumers in Australia.
Fintek maintains an Australian Financial Services Licence and is subject to regulation by the Australian Securities and Investments Commission (ASIC).
Vakul Talwar, the general manager of Australia at Crypto.com, stated that the acquisition was a “significant leap” for the Singapore-based exchange, as it now can provide equities trading on both Australian and international stock exchanges.
Additionally, it will enable them to provide deposit products, derivatives, securities, foreign exchange, and managed investment schemes.
“We will be able to initiate equities trading on Australian and international exchanges, such as the Australian Securities Exchange, London Stock Exchange, New York Stock Exchange, and Nasdaq, as part of this brokerage acquisition,” he stated.
Talwar also stated, “It also provides us with the opportunity to provide CFDs on various asset classes to sophisticated investors and retail customers.”
According to Talwar, the ultimate objective is to bridge the gap between traditional finance and digital assets by incorporating traditional brokerage capabilities, enabling users to administer “a variety of investment assets” and “different investment classes.”
Merchants are not required to accept bitcoin or cryptocurrency as payment for goods or services, although they are lawful in Australia for trade, spending, and holding.
The government announced in August 2022 that it was consulting with industry actors, investors, and stakeholders to draft a regulatory framework for the crypto sector. The work is still ongoing.
Alan Kirkland, the commissioner of ASIC, announced at the AFR Crypto Crypto and Digital Assets summit in Sydney on September 23 that the regulator was drafting a new guidance that would mandate that crypto exchanges obtain financial services licenses.
During discussions with Australian authorities, Talwar asserts that Crypto.com has been striving to “assist in the advancement of clear regulations in Australia.”
“As a responsible local industry player, we are working closely with the government and ASIC to address the current lack of guidance on crypto regulation in this country,” he stated.
The crypto exchange announced on October 31 that it had acquired Watchdog Capital, a broker-dealer registered with the United States Securities and Exchange Commission (SEC). This acquisition enables the exchange to provide stocks and equity options to eligible merchants in the United States.
