- Swyftx and Superhero canceled their plan of “historic merger”.
- The $1.5B worth merger is to create a digital and traditional finance powerhouse.
- Australia’s ASIC is tightening the regulations for crypto space.
Crypto industry is experiencing a hectic phase with strict regulations are also emerging on the other scale. As the current situation is at its worst, all business giants, financial institutions, and investors have lost hope in the market scope.
Due to this bad scenario, Australian crypto exchange, Swyftx and online investing platform, Superhero separated their pathways. Yes, the “historic merger” announced earlier in June is now call-off due to the high regulatory actions on crypto space.
Moreover, the operational idea of this merger is to provide a “digital and traditional finance powerhouse” worth $1.5B. In addition, this will help almost 800K customers to connect under one hub.
Extensive Australian Regulations – Merger Abandoned
Over a recent period, the Australian Authorities became very strict and keen in monitoring all the crypto products in the country. In line with this case, the Australian Securities and Investments Commission (ASIC) sued BlockEarner, BPS Financial – subsidiaries of Finder.com. The sue was issued for operating over illegal financial services thereby affecting the customers with fraudulent products.
Additionally, there were various crises happening in the crypto marketplace which hindered Superhero or Swyftx to continue the merger plan. More so, the Swyftx announces firing of 35% of its employees due to the ongoing crisis in the crypto market.
On that note, the CEO of Superhero adds his comments,
“The high volatility in the market and the strict regulations in the space raised the difficulty level of achieving the implementation of the merger. However, Superhero will work independently in support of my co-founder Wayne Baskin.”
Thus, as the entire crypto market was looking for Australia to be the next hub for crypto space, the authorities and securities of the country are vigilant with their eyes wide open. The current situation, however, calls for a safer and more secure place to explore these digital assets.
