Kucoin, the popular crypto exchange, will be investing $3 million in Bitcoin Australia, also a cryptocurrency exchange. The deal will be beneficial for both exchanges, as they were looking for expansion opportunities of their own, as Kucoin is setting up shop in the Australian market and Bitcoin Australia has set its eyes on the UK.
Michael Gan, the chief executive of Kucoin, announced on Sunday that their cryptocurrency exchange has invested $3 million into Bitcoin Australia in a deal which is expected to grow in the country.
“Now, I would like to inform you about our latest key partnership,” Gan posted on Twitter. “I have been told that some users noted that Kucoin has accomplished investing in Bitcoin Australia, a leading Australian cryptocurrency exchange. I want to confirm that this is true,” stated the executive.
Previously, Rupert Hackett, the chief executive of Bitcoin Australia, told the Australian Financial Review that these funds will aid Bitcoin Australia into infiltrating their operation into 27 new markets in the following two years. The company’s operations are currently limited to Australia, the Netherlands, and Canada.
Hackett stated that this agreement will lead to an increase in demand for cryptocurrency from both Australian and global investors.
“It will effectively create an exchange for intermediate and advanced traders,” he was quoted as saying. “The UK is our next primary target. We want it to be seamless with the payment infrastructure in the UK and build up the brand,” said Hackett. He stipulated that Bitcoin Australia for now just offers the ability to buy cryptocurrency, and wants to expand to contain a personalized practice.
Kucoin has registered more than four million users and has transactions of over half a million US dollars each month. In the past 24 hours since the article was written, nearly $13.1 million worth of bitcoin was traded on the exchange.
“This (deal) is not only a great strategic decision but will be an excellent long-lasting partnership for us to help cryptocurrency grow,” said Gan.
Last week, the Australian Securities and Investments Commission (ASIC), the country’s regulator for financial markets, said it will regulate cryptocurrency exchanges and ICOs to remove “potential harm” from these developing technologies.
Their “Corporate Plan” for the next four years, included the following:
“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.”
Hackett was not particularly worried by the country’s current regulations, believing that they are “very progressive based on the global climate.” He is hopeful that “because we’re a regulated cryptocurrency exchange, we can leverage that in these international markets and foster business relations on that foundation.”
Australia is thriving as an environment for cryptocurrencies, both as a payment method and trading asset. According to Hive Ex, nearly 14 percent of Australians hodl some type of cryptocurrency, and more payments are being made using bitcoin.