Blake Cassidy, CEO of Australian microinvestment app Bamboo, claimed that the Australian Securities Exchange’s (ASX) bias against listing crypto companies is causing an Australian brain drain that prompts companies to seek a listing in the United States.
Cassidy’s comments come the same week the company announced a $ 3million (AU $ 4million) Series A investment round, including participation from Australia’s largest cryptocurrency hedge fund, Orthogonal Trading. , Mountain Ash Investment Management and VP Capital.
Bamboo is a micro-investing app that allows users to buy small amounts of digital currencies, such as Bitcoin (BTC) and Ether (ETH), rounding up each purchase to the next dollar and using the difference to buy any asset. offered by the application.
Cassidy Recount The Sydney Morning Herald that when he and his team were in the process of securing backers for the crypto-based microinvestment app, he was asked if he would pursue a local Australian listing. His answer was a simple “No”.
“Businesses like ours that need to raise capital and grow quickly have to look to North America because we can’t do it here.
Bamboo may already be gearing up for an expansion of the US market and even a potential listing based on information in a recent announcement. The company “sees a gap in the market for its simple and accessible application that focuses on micro-savings and uses its roundup strategy.” Part of the $ 3 million raised will go to expansion efforts in the United States.
Bamboo is far from the first company to suggest that the ASX is biased against companies that deal in cryptocurrencies. Animoca Brands, the non-fungible token game and developer of virtual properties behind Delta F1 and a key player in The Sandbox, was fired from ASX in March 2020 for non-compliance with ASX rules.
Animoca is now based in Hong Kong and was valued at around $ 2.2 billion after a funding round of $ 65 million last month.
ASX said that while it is aware of the interest in Australian crypto firms, a regulatory balance must be maintained to protect the interests of the market. The ASX also highlighted the recent interim approval of the Bitcoin and Ether exchange-traded funds.
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In July 2021, ASX warned Australian investors against buying digital currencies on exchanges due to concerns about self-ownership and currency custody. ASX believes that a more regulated environment could counter some of the risks between self-custody and coin custody.
Cassidy noted that there is an element of competition between ASX and crypto exchanges, and he suggested that “there is probably an anti-competitive element.”