Because the ASX is hesitant to list crypto startups, Blake Cassidy predicts a brain drain from Australia.
According to Blake Cassidy, the Australian Securities Exchange’s (ASX) prejudice against listing crypto startups, CEO of Australian micro-investment app Bamboo, is generating an Aussie brain drain, prompting firms to seek a US listing.
Cassidy’s comments came after the business launched a $3 million ($4 million) Series A investment round, including Orthogonal Trading, Mountain Ash Investment Management, and VP Capital, Australia‘s largest cryptocurrency hedge fund.
Bamboo is a micro-investing program that allows users to acquire tiny sums of digital currencies like BTC and ETH by rounding up to the next dollar and utilizing the difference to buy any asset offered by the service.
Cassidy told the Sydney Morning Herald that he and his colleagues were asked whether they would seek a local Australian listing while recruiting investors for the crypto-based micro-investment platform. His response to them was a straightforward “No.”
Based on facts in a recent release, Bamboo might be gearing up for market growth in the United States, as well as a possible listing. The firm sees a market need for its easy-to-use program that focuses on micro-savings and employs their round-ups technique. A part of the $3 million obtained will be used to expand the company’s operations in the United States.
Bamboo is far from the first firm to claim that ASX is prejudiced against cryptocurrency startups. For example, in March 2020, Animoca Brands, the NFT-game and virtual property company behind F1 Delta and a prominent player in The Sandbox, was kicked from the ASX for violating ASX regulations.
Following a $65 million investment round last month, Animoca is now located in Hong Kong and is valued at roughly $2.2 billion.
While the ASX is aware of the interest in Australian crypto firms, it emphasized that a regulatory balance must be maintained to preserve the market’s interests. The ASX also mentioned the ETFs for Bitcoin and Ethereum that were recently granted provisional clearance.
Chainalysis, a blockchain forensics business, has opened an office in Australia.
The ASX warned Australian investors against buying digital currencies on exchanges in July 2021, citing worries about self-ownership and exchange custody. The ASX feels that a more regulated environment would mitigate some of the dangers of holding coins in self-custody versus storing them on an exchange.
Cassidy stated that there is some rivalry between the ASX and crypto exchanges, but he believes there is also some anti-competitive behavior.