Crypto.com enables the Australian company to expand financial products in the domestic market.

Crypto.com said on Sunday it has acquired Fintech Securities, a local brokerage and trading firm regulated by the Australian Securities and Investments Commission (ASIC), as part of its expansion plans in the island nation.

The agreement will see Crypto.com license Fintek's Australian financial services, enabling the platform to offer deposit products, derivatives, securities and managed investment schemes to its Australian users, according to a statement.

FinTech operates as a Contract for Difference (CFD) broker, providing trading services for foreign currencies, commodities and indices.

Vakul Talwar, general manager of Crypto.com in Australia, said: “While we recognize that there is currently limited guidance on crypto regulation in this country, we are working very closely with the government and ASIC and doing what we can as a responsible local industry player.”

Australia's crypto regulation is still in its early stages, with limited guidance due to regulators' efforts to balance innovation with consumer protection and align with international standards.

Efforts to regulate cryptos in the country include introducing token mapping consultations, strengthening anti-money laundering laws and regulating digital asset exchanges. However, a comprehensive law is yet to be enacted.

Instead, companies are chasing acquisitions to speed market entry and gain regulatory status by bypassing the lengthy process of directly applying for a license.

While details are scarce, Crypto.com said it will release more information in the coming weeks. A spokesperson for the exchange did not immediately return a request for comment.

This strategy is a case of crypto industry mergers and acquisitions aimed at expanding the company's operational capabilities from scratch without going through licensing requirements.

Examples of this trend include Ripple's acquisition of Metaco, Securitize's Onramp investment, Coinbase's acquisition of One River Management, and most recently, Stripe's $1.1 billion acquisition of Bridge, a stablecoin payment platform.

Edited by Sebastian Sinclair