Bitcoin Australia and KuCoin strike $3 million deal
The deal is aimed at putting both exchanges on the path to a synergistic partnership.
KuCoin has dropped $3 million into Bitcoin Australia in order to pick up a more solid foothold in the Australian market, the Australian Financial Review reports. The funds will similarly help Bitcoin Australia continue its expansion overseas. It currently has footholds in Australia, Canada and the Netherlands but aims for a presence in 30 different markets in the next 2 years.
It might be an example of Australia's forward-looking cryptocurrency regulation in action, drawing in extra participants from around the world despite being a relatively small market for consumer crypto. It follows the recent arrival of Huobi, which similarly landed in Australia in search of a wider international footprint and a friendly regulatory climate.
At first glance, KuCoin and Bitcoin Australia might seem more like competitors than partners. Both are in the crypto exchange business, and both are eyeing international expansion plans.
But Bitcoin Australia CEO Rupert Hackett isn't concerned. The vision seems to be for each exchange to complement the other's strengths whenever they tread in the same markets.
"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... KuCoin is designed for speculative investors and offers 300 different cryptocurrencies to buy and sell and it doesn't do any onboarding," Hackett said.
After all, if there's one thing that comes to mind when you look at KuCoin, it's sophistication and professionalism.
The next stop for Bitcoin Australia, Hackett says, is the United Kingdom where it plans to leverage its regulatory legitimacy.
AUSTRAC regulations are "very progressive based on the global climate," Hackett says. "Because we're a regulated cryptocurrency exchange, we can leverage that in these international markets and foster business relations on that foundation.
"The UK is our next primary target. We offer the ability to purchase cryptocurrency already, but there's a big difference between that and a bespoke experience. We want it to be seamless with the payment infrastructure in the UK and build up the brand."
Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VET, XLM, BTC and ADA.