Key facts
- Swyftx has been granted an Australian Financial Services License (AFSL).
- The license allows the exchange to offer derivative products and payment services.
- Swyftx intends to enter the crypto payments market.
- The company sees stablecoins as a potential alternative for merchants facing new payment regulations.
- Swyftx aims to use its regulated Australian base for international expansion.
Australian crypto exchange Swyftx has announced its intention to explore the crypto payments sector following the acquisition of an Australian Financial Services License (AFSL). This license enables the company to offer derivative products and, crucially, non-cash payment facilities, positioning it to serve both business and retail clients.
Swyftx interim co-CEO Andrea Yuen stated that the company will evolve beyond being solely a crypto spot exchange, with a particular focus on payments. This strategic shift is partly influenced by upcoming Australian regulations, effective October 1, which will prohibit businesses from adding surcharges to Visa and Mastercard debit and credit card payments. Swyftx aims to present crypto and stablecoins as a cost-effective alternative for merchants who will now absorb these transaction costs.
Beyond its domestic ambitions, Swyftx is also looking to expand its international footprint, leveraging its regulated Australian base. The company currently serves clients in New Zealand and the U.S. and had previously sought authorization from the UK's Financial Conduct Authority.
The AFSL requirements for crypto firms are becoming more stringent, with most needing to comply by April 9, 2027. This regulatory framework mirrors that of traditional financial companies. Only a limited number of crypto exchanges, including Coinbase, BTC Markets, and Crypto.com, have thus far secured AFSLs. The Australian Securities and Investments Commission (ASIC) has extended the application deadline for these licenses to September 30 and has received approximately 30 applications.
Separately, a survey by Independent Reserve suggests a growing cryptocurrency adoption in Australia, with 33% of the population now owning digital assets. The survey attributes this trend partly to younger Australians seeking alternative investment avenues due to the increasing difficulty of accessing traditional wealth-building paths like home ownership.