• Crypto.com has acquired Watchdog Capital, a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC)
• The acquisition will allow Crypto.com’s subsidiary in the U.S. to offer stocks and equity options to eligible traders
• Watchdog Capital was established by Bruce Fenton, a long-time advocate for digital assets
Cryptocurrency exchange Cryptocom has announced the acquisition of Watchdog Capital, a broker-dealer registered with the United States Securities and Exchange Commission (SEC). This move will allow Cryptocom to expand its offerings beyond just cryptocurrencies by also providing stocks and equity options to eligible US traders.
Cryptocom’s Growing Ambitions
The acquisition of Watchdog Capital, which is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), will allow Cryptocom to integrate traditional financial tools with digital capabilities. Cryptocom aims to become an industry leader in the cryptocurrency space by obtaining the necessary licenses and registrations to operate legally.
According to Cryptocom CEO Kris Marszalek, the company is “aggressively working towards integrating traditional financial tools with digital financial capabilities.” Marszalek stated that Cryptocom is doing this “while maintaining our focus on building responsibly with the necessary licenses and registrations to operate as the industry’s leader.”
Cryptocom’s Regulatory Battles
The acquisition comes just weeks after Cryptocom filed a lawsuit against the SEC after receiving a Wells notice from the regulator. Cryptocom joins a series of crypto companies currently battling regulatory action from the SEC.
While Cryptocom is headquartered in Singapore, it officially launched services in the US in March 2022, initially only focusing on institutional investors. Cryptocom did announce a suspension of US services in June 2023 due to limited demand during the crypto winter.
Looking Ahead
With over 100 million users worldwide, Cryptocom is pushing forward with global expansion plans despite regulatory uncertainty in the US. The company recently partnered with Standard Chartered Bank to enable fiat deposits and withdrawals in over 90 countries through its app.
Cryptocom is determined to become a leading force in integrating traditional finance with digital assets. The acquisition of Watchdog Capital marks a major step forward in this vision. However, ongoing legal battles with the SEC pose a threat to Cryptocom’s ambitions. The coming months will be crucial in determining the scope of Cryptocom’s future US presence.
Conclusion
Cryptocom’s acquisition of an SEC-registered broker represents a bold expansion strategy amid turbulent market conditions. With its sights set on bringing stocks and equities to its platform, Cryptocom aims to become a centralized hub for all financial needs. But regulatory roadblocks may present significant challenges. Cryptocom’s push into traditional finance promises further convergence between mainstream and crypto finance.
