Singapore-based cryptocurrency exchange KuCoin has marked its foray into Australia with a multi-million investment in a regulated domestic exchange, part of a new joint venture.
The Australian Financial Review is reporting that KuCoin has invested the AUD $3 million investment in Bitcoin Australia, a domestic exchange that enables bitcoin trading and ethereum buying, enabling the Asian exchange operator enter the Aussie market with a marked focus on high-end, advanced investors.
Bitcoin Australia will meanwhile use the newly gained finances to fund its own expansion efforts into retail investor markets around the world. Founded in 2015, Bitcoin Australia has a presence in Canada and the Netherlands beyond its shores presently. Chief executive Rupert Hackett claims the company’s own aggressive expansion will target 30 countries before the end of 2020.
While targeting different markets, both companies have “clear synergies” leading to the joint-venture, the executive said, telling the AFR:
“It will effectively create an exchange for intermediate and advanced traders, while we’re a mass market approach, making us quite synergistic. We’ll build the consumer-friendly retail experience for people entering the market, while supporting KuCoin for advanced traders”
A crypto-to-crypto only exchange, KuCoin is currently working on the alpha version of its fiat exchange that is expected to launch in Q4 2018.
The exchange has seen $10.5 million in transactional volume over a 24-hour period, according to data from CoinmarketCap. The exchange employs 300 people and has over 4 million users on its platform, according to the report.
“I want to confirm that this is true,” KuCoin chief executive Michael Gan said of the company’s investment. “This is not only a great strategic decision but will be an excellent long-lasting partnership for us to help cryptocurrency grow globally.”
Bitcoin Australia’s newly-gained investment toward expansion plans comes at a time when domestic exchanges are regulated by the Australian Transactions and Reporting Analysis Center (AUSTRAC). Introduced in April, the regulations mandate domestic exchanges to enroll in the watchdog’s register while complying with know-your-customer (KYC) and anti-money laundering & counter-terrorism financing (AML/CTF) norms.
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Last modified: May 20, 2020 6:01 PM UTC