Swyftx Acquires Easy Crypto, Eyes US Regulatory Tailwind

Australian crypto broker Swyftx has announced its acquisition of New Zealand-based crypto exchange Easy Crypto. The deal, which is set to be finalized by March 31, is seen as a strategic move to capitalize on the anticipated positive regulatory changes in the United States under the Trump administration.

Swyftx CEO Jason Titman highlighted the potential tailwind from Trump's policy messaging around crypto, suggesting that the deal is timely given the "cusp of sensible regulation in the US." This regulatory clarity is expected to bring liquidity to the market and encourage other governments to follow suit with their own legislation.

Titman noted that while the deal was in progress before Trump's election, the current political environment is more conducive to dealmaking. He believes that the crypto industry has been through a period of reduced mergers and acquisitions activity due to regulatory uncertainty, particularly during the Biden administration. This hesitation has also affected other markets where regulators have been slow to introduce clear legislation supporting blockchain and digital assets.

With the acquisition, Swyftx and Easy Crypto will continue to operate as separate platforms initially, allowing the teams to plan for their integration. The combined workforce will be just under 200 employees, operating out of Brisbane, Australia.

Janine Grainger, co-founder and CEO of Easy Crypto, described the acquisition as a "natural fit," creating a new oceanic heavyweight in the crypto market. She emphasized the rapid changes in the crypto market over the past four years, with a trend towards consolidation and the emergence of strong regional and global players.

Grainger also highlighted the increasing interest in the crypto industry in New Zealand, with strong local support and a significant portion of the population either currently investing in crypto or considering future investments. This regulatory environment is expected to drive trust and economic growth in the region.