Australian Investing Apps Cancel $1.5B Merge Plan Amid Tightening Crypto Regulations

Estimated read time 2 min read
  • Australian Crypto Exchange Swyftx, a youth-orientated online share broker Superhero platform abandon Merger Plan.
  • The regulatory crypto environment is not conducive for traditional business and crypto native companies to merge.

The Australian investing, trading, and superannuation online platform, Superhero, and the Australian-based crypto exchange Swyftx have terminated their merger due to increased regulations in the crypto space.

The merger, which was announced in June, would have created one of the largest online brokers and trading houses in the country. However, the two companies have decided to go their separate ways due to the regulatory uncertainty surrounding cryptocurrencies in Australia.

The Australian Securities and Investments Commission (ASIC) has been cracking down on cryptocurrencies in recent months, and it is unclear what the future holds for the industry. This uncertainty has made it difficult for Superhero and Swyftx to move forward with their merger.

In addition to the regulatory uncertainty, the crypto market has also been volatile in recent months. The price of Bitcoin has fallen by more than 50% since its peak in November, and many other cryptocurrencies have also lost value. This volatility has made it difficult for Swyftx to raise the capital it needs to support its growth.

The termination of the merger is a blow to both Superhero and Swyftx. Superhero had hoped to expand its offerings by adding cryptocurrencies to its platform, and Swyftx had hoped to gain access to Superhero’s large customer base. However, the regulatory uncertainty and the volatile crypto market have made it too difficult for the two companies to move forward with their plans.

The termination of the merger is also a sign of the challenges facing the crypto industry in Australia. The ASIC is cracking down on cryptocurrencies, and the market is volatile. This makes it difficult for crypto companies to operate in Australia, and it could lead to more mergers and acquisitions in the future.

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