Cryptocurrency firm Ripple is acquiring payments firm BC Payments Australia to secure a critical Australian Financial Services License (AFSL). The move, set to finalize on April 1, is part of Ripple’s international licensing expansion and aims to strengthen its payments business in the Asia-Pacific region amid upcoming regulatory changes for crypto companies in Australia.
Cryptocurrency and payments company Ripple announced it will acquire BC Payments Australia to obtain an Australian Financial Services License (AFSL). The acquisition is scheduled to close on April 1, according to a report citing Ripple APAC managing director Fiona Murray.
Murray stated that Australia is a key market and institutional interest warranted the investment. “Getting licensed was always part of our plan,” she said.
The license will allow Ripple Payments to manage the full transaction lifecycle in the country. This expansion follows Ripple securing payment licenses in Singapore, the UAE, and the UK over the past year.
The company has also pursued a US trust charter and made acquisitions like non-bank prime broker Hidden Road. These moves aim to expand use cases for XRP and the Ripple USD stablecoin.
Australia’s regulatory landscape is evolving with the Digital Asset Framework bill before the Senate. The Australian Securities & Investments Commission (ASIC) has proposed rules and expects crypto platforms to secure AFSLs.
Murray expressed hope that the licensing regime will address widespread “debanking” of crypto firms by Australian banks. Major banks have imposed various restrictions on transactions with crypto exchanges.
OKX Australia CEO Kate Cooper confirmed that banking barriers remain a significant industry challenge. She noted that efforts are ongoing to encourage government standards on the issue.
