Singaporean crypto exchange KuCoin invests $3M in Bitcoin Australia

Singaporean cryptocurrency exchange KuCoin has invested over $3 million in Bitcoin Australia, The Australian Financial Review reported September 9.

The companies have formed a joint venture which will see KuCoin expand its footprint in Australia. Bitcoin Australia, on the other hand, intends to use the funding to support its international expansion plans.

KuCoin CEO Michael Gan confirmed the news in an online post, stating:

“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. This is not only a great strategic decision but will be an excellent long-lasting partnership for us to help cryptocurrency grow globally.”

Bitcoin Australia chief executive Rupert Hackett told AFR that he wants the company to become an ambassador for bitcoin and be recognised as a trusted platform. On these lines, Bitcoin Australia chose to raise funds through traditional methods, not via an initial coin offering.

"We're really centred on establishing trust in the existing system. We're building a vertical service [for the cryptocurrency industry] and we need to be a strong and legitimate business in this space and the way to that is through a more traditional funding route."

Hackett said that he was confident in continued demand from local investors despite the recent weakness in the prices of bitcoin and other cryptocurrencies.

"KuCoin is designed for speculative investors and offers 300 different cryptocurrencies to buy and sell and it doesn't do any onboarding," Hackett said. "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."

Having already expanded to the Netherlands and Canada, Bitcoin Australia is seeking to enter other European markets, the report said.