- Crypto.com has announced its purchase of an Australian company with an Australian Financial Service License has been approved.
- The company, which already has Australian users, said the acquisition will allow them to roll out their suite of services already available in international markets.
- The company’s cryptocurrency debit card is a product aimed at “new-to-crypto” users, allowing them to make purchases and withdraw from ATMs with the card.
- Visit Business Insider Australia’s homepage for more stories.
A major cryptocurrency exchange and payment platform with a foot in the Australian market has made a big move to try and entice “new-to-crypto” users with its cryptocurrency-based debit card.
The cryptocurrency exchange and payment platform announced earlier this month that an acquisition of an Australian company had been approved, facilitating expansion into the Australian market.
The Hong Kong-based firm’s purchase of The Card Group Pty Ltd. and its Australian Financial Service License has now been approved by the Australian Investment Review Board.
Acquisition of the license means that Crypto.com can bring its cryptocurrency-based debit card to Australia as well as continuing to roll out their full suite of services, according to the company’s CEO and Co-founder Kris Marszalek.
“Essentially, our goal is to complete the full suite of product offerings to our Australian customers, so that users can buy/sell/earn/pay and spend with crypto without the need to leave the platform and maximize their benefits with lower fees and higher cashback rewards,” he told Business Insider Australia.
Crypto.com has had Australian users since 2018 but in June this year the platform began to support the Australian dollar directly. This allows Australian users to directly buy cryptocurrency without having to pay foreign currency exchange fees.
Marszalek said that the company thought Australia is a “compelling” market. He points towards a 2020 report by the Reserve Bank of Australia about consumer payment behaviour that found that 80% of Australians know about cryptocurrencies, but only 1% use them.
“The fact that so many are already aware of cryptocurrency, means that it is only a matter of time until their appetite for digital currencies is both realised and will need to be solved,” he said.
The company bills their debit card product as a user-friendly way of getting new customers to use cryptocurrencies.
The card allows users to use their current cryptocurrency funds with normal card payment systems or for ATM withdrawals. Crypto.com is hoping to edge out other existing cryptocurrency debit cards in Australia with a promise of 8% cashback in crypto and no fees.
But soon, Marszalek said that will change.
“In the near future, digital assets will serve as a collateral for all your spending — we will assign credit limits to our users based on their wallet balance. In this scenario, you can use the card to pay your bills, while keeping your digital asset portfolio (and it’s potential upside) intact,” he said.
The card, along with their exchange and even their financial services products which allows customers to get loans or earn interest on their cryptocurrencies, is part of the company’s efforts to create a “crypto ecosystem” that is accessible to a broad audience.
“We have created products that are designed to support those currently not using cryptocurrency, given how familiar our credit/debit card is for traditional financial users, along with our user-friendly app, Exchange, and more,” Marszalek said.
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