Crypto Exchange Swyftx Cancels Merger Agreement With Superhero
- Swyftx, a crypto exchange based in Australia, has been forced to pull out of a planned 1.5 billion Australian dollar merger deal with superannuation fund platform Superhero.
- The deal is canceled and the regulatory climate for crypto in Australia is reportedly to blame.
- The cancellation comes after crypto-related companies were sued by the Australian Securities and Investments Commission (ASIC).
Swyftx, an Australian cryptocurrency exchange, and Superhero, an Australian share trading and superannuation platform, called off their proposed merger, citing the government’s increased regulatory pressure on the crypto company, according to the Australian Financial Review.
The idea, which was unveiled in June, was hailed as a historic merger that would bring together more than 800,000 clients and create a A$1.5 billion ($10 billion) digital and conventional financial behemoth.
The deal is now allegedly off because of Australia’s crypto regulatory environment.
John Winters, a co-founder of Superhero, was reported by AFR as claiming that the country’s investor enthusiasm for cryptocurrency goods has decreased. Winters also made a connection between the current FTX bankruptcy and the failure of the merger.
The co-founder of Superhero further stated that the company was focusing on long-term traditional investments that had greater transparency.
“The volatility in the market as well as the current regulatory environment has made it increasingly difficult to achieve the initial vision that inspired the merger earlier this year. Superhero will return to being independently owned by myself and my co-founder Wayne Baskin,” Winters said.
The cancellation comes after three crypto-related companies were sued by the Australian Securities and Investments Commission (ASIC): Block Earner, BPS Financial, the organization that created the qoin digital token, and financial product comparison website Finder.com. The government is now taking action to strengthen crypto regulations for the upcoming year by soliciting opinions and suggestions for a consultation paper.
Due to the market slump, Swyftx reduced its employment by 90 employees, or 35%, earlier this month. After the cryptocurrency exchange fired 74 workers during the summer, this was the second wave of staff layoffs.
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