Crypto Exchange KuCoin Invests $3 Million in Rival Bitcoin Australia

Crypto exchange Bitcoin Australia has received $3-million funding from Singaporean rival KuCoin.

Singapore-based virtual currency marketplace KuCoin has made an investment in Bitcoin Australia – a move that is targeted to enhance the global expansion of both parties, the company’s CEO Michael Gan said in a LinkedIn statement. The financing amounts to nearly $3 million, the Australian exchange’s chief executive Rupert Hackett disclosed in an interview for local news outlet The Australian Financial Review on Sunday.

The money will add to previously raised capital from Dominet Venture Partners and will be used to fund Bitcoin Australia’s “aggressive international expansion” which sees the UK as its next primary target, Hackett explained. The marketplace will afterwards seek to enter other European markets, as well as Canada.

According to Hackett, Bitcoin Australia, holding an official license, is ripe for an international expansion, as it complies with the local regulations, which incriminate unauthorized crypto exchanges.

As for the recent partnership with KuCoin, Hackett told the online publication the two companies “had clear synergies”.

"[KuCoin] 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," Hackett said.

At present, KuCoin offers trading with hundreds of cryptocurrencies, while Bitcoin Australia allows its users to buy and sell BTC and buy ETH against Australian dollars.

Despite a cryptocurrency market that has been shedding value in the recent months, demand from local investors is not seen to subside in the long term, Hackett maintained:

"When you compare the global trade in cryptocurrency compared to all-time high trading volumes it has depressed 5-10 per cent, but it's still up 60-70 per cent on 12 months ago."