Australian Swyftx and Superhero pull out of merger

Australian cryptocurrency exchange Swyftx and local online investment platform Superhero announced they were abandoning the merger. The move was driven by tighter industry regulation, according to the Australian Financial Review.

“Market volatility, as well as the current regulatory environment, complicate the realisation of the initial vision that inspired the merger earlier this year,” said John Winter, CEO of Superhero.

According to him, the platform will remain independent and develop “as a separate company.” User funds are safe, as their data and assets were not provided to Swyftx, added Superhero.

Australian firms announced the merger in June. A few months later, authorities said they planned to tighten industry requirements in 2023, and the local Securities and Investments Commission initiated a case against Block Earner for operating without a licence.

Earlier, the Commonwealth Bank of Australia delayed the rollout of crypto trading due to regulatory uncertainty.

Earlier in August, Swyftx cut its staff by 21% to reduce costs during the bear market.

In December the exchange fired another 90 employees amid the collapse of FTX. At that time, top executive Alex Harper explained that the company must “prepare in advance for the worst-case scenario” at the start of 2023, but has no direct connection to the structures of Sam Bankman-Fried.

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