Australian crypto exchange Swyftx secured a license from the country’s market regulator, Australian Financial Services License (AFSL), the firm said on Wednesday. With this development, Swyftx has become the latest platform to join Coinbase, BTC Markets and Crypto.com in securing regulatory approval in the country.
The license enables Swyftx to offer derivative products to everyday investors, including crypto options and futures contracts, and it also grants non-cash payment facility authorization, opening the door for the exchange to provide payment services to both business and individual clients. However, the license does not extend to spot crypto trading, meaning that segment of Swyftx’s business operates outside AFSL coverage.
Starting October 1, Australian merchants will no longer be permitted to pass along surcharges for Visa and Mastercard debit and credit transactions. Since businesses will need to absorb these processing costs themselves, many may start hunting for more cost-effective payment alternatives. Swyftx sees this shift as an opening to position crypto and stablecoins as a viable substitute for traditional card payment rails.
The exchange already operates in New Zealand and the United States, and has previously explored entry into the United Kingdom, having submitted an application to the UK’s Financial Conduct Authority back in March 2022.
Swyftx joins a still-limited group of crypto platforms—Coinbase, BTC Markets, Crypto.com and KuCoin among them—that have successfully obtained AFSLs so far. This development follows Australia’s securities regulator, ASIC, pushing back the deadline for crypto companies to submit AFSL applications to September 30. According to ASIC, the regulator has fielded roughly 30 license applications from digital asset businesses since last October.
