KuCoin invests $3m in Bitcoin Australia

September 10, 2018
Chris Wheal

Singapore based cryptocurrency exchange, KuCoin has invested $3m in Australia’s local exchange Bitcoin Australia, reports the Australian Financial Review [AFR].

 

The report added that the deal involves a joint venture that aims to strengthen Bitcoin Australia’s international expansion and also target the expansion of KuCoin in Australia.

According to the AFR, Bitcoin Australia currently has three markets and the partnership with KuCoin will help that figure to grow to over 50 markets within two years.

Right time to grow

Bitcoin Australia’s chief executive, Rupert Hackett told the daily: “KuCoin is designed for speculative investors and offers 300 different cryptocurrencies to buy and sell and it doesn’t do any onboarding. 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.”

Hackett added that it was the right time for expansion due to the regulations introduced by the Australian Transaction Reports and Analysis Centre [AUSTRAC] to govern cryptocurrency exchanges. He regarded AUSTRAC as very progressive against general standards globally.

The company has already attempted to reach the Canadian and the Netherlands market and aims to expand in European markets in the future, the report states.

KuCoin chief executive Michael Gan announced the company’s $3m investment and key partnership with Bitcoin Australia in a Twitter update on Sunday.

ASIC scrutiny

The deal comes days after Australia’s financial markets regulator, the Australian Securities and Investments Commission (ASIC), announced plans to  tighten control of cryptocurrency exchanges and token sales to eliminate “potential harm” from emerging technologies.

In its “Corporate Plan” plan for the next four years, ASIC stated: “We will continue to focus on monitoring threats of harm from emerging products, cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyber-based mechanisms.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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