Blake Cassidy, CEO of Australian micro-investing app Bamboo, has stated that the propensity of the Australian Stock Exchange (ASX) to list crypto companies is causing the situation, with Drain Drain causing leading Australian companies to seek listing in the US.

Cassidy’s comments come the same week the company announced a $ 3 million (A $ 4 million) Series A investment round that would include participation from Australia’s largest crypto hedge fund, Orthogonal Trading, Mountain Ash Investment Management and VP Capital included.

Bamboo is a micro-investment app that allows users to buy small amounts of cryptocurrencies like BTC and ETH by rounding up to the nearest dollar with each purchase and using the difference to purchase all of the products provided by the application.

Cassidy told the Sydney Morning Herald that he and his team were in the process of attracting backers for a crypto-based microinvestment app and was asked if he would be following a portfolio, Australian local books or not. His answer to that was a simple “no”.

“Companies like us that need to raise capital and scale quickly need to look to North America because we can’t do that here.”

Bamboo may be preparing for an expansion in the US and even a possible listing, based on the information in a recently released announcement. The company “sees a niche in the market for its simple, accessible app that focuses on micro-savings and leverages its capital-raising strategy.” A portion of the $ 3 million will be used for expansion efforts in the United States.

Bamboo isn’t the first company to claim the ASX is biased against companies that trade cryptocurrencies. Animoca Brands, the NFT game developer and virtual real estate behind F1 Delta and a major player in The Sandbox, was kicked out of ASX in March 2020 for failing to comply with ASX rules.

Animoca is currently headquartered in Hong Kong and is valued at approximately $ 2.2 billion after a $ 65 million round of funding last month.

The ASX states that while they are aware of the interest in Australian crypto businesses, the regulatory balance needs to be maintained to protect the interests of the market. The ASX also points to the recent tentative approvals for Bitcoin and Ethereum ETFs.

Related: Blockchain Forensics Firm Chainalysis Opens Australia Office

In July 2021, ASX warned Australian investors not to buy digital currencies on exchanges amid concerns about ownership and custody. ASX believes that a more regulated environment can mitigate some of the risk between self-custody and holding funds on an exchange.

Cassidy noted that there was an element of competition between ASX and crypto exchanges and he suggested, “There may be an element of this that is anti-competitive”.

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