Swyftx secures Australian Financial Services License to launch crypto

Swyftx announced on Wednesday that it has been granted an Australian Financial Services License (AFSL), clearing the regulatory hurdle to offer derivative products and non‑cash payment facilities to retail and business clients [1]. The license positions the exchange to pivot from a pure spot‑trading model toward crypto‑payments, a move that could capture merchants seeking cheaper alternatives once a new surcharge ban on Visa and Mastercard takes effect on Oct 1.

Expanding beyond spot trading

Interim co‑CEO Andrea Yuen said Swyftx will no longer be a “pure crypto spot exchange” and will focus on the payments space, citing the upcoming Australian ban on credit‑card surcharges as a catalyst for merchants to explore cheaper rails [1]. The AFSL authorises the firm to provide non‑cash payment facility authorization, enabling it to pitch crypto and stablecoins as lower‑cost transaction options. Yuen highlighted that “crypto payments and stablecoins offer an opportunity for merchants to reduce the transaction costs they might have to bear in future” [1].

The license also unlocks the ability to launch derivative products such as crypto options and futures for retail customers, expanding Swyftx’s product suite beyond spot trading. This aligns the exchange with a small cohort of Australian crypto firms that have already secured AFSLs, including global players like Coinbase and Crypto.com [1].

International ambitions and regulatory timeline

While the AFSL is a domestic milestone, Swyftx plans to use Australia’s regulated environment as a springboard for overseas growth, targeting markets in New Zealand, the United States and potentially the United Kingdom, where it filed an FCA application in March 2022 [1]. The broader regulatory framework will tighten in 2027, when most crypto firms must hold an AFSL under legislation passed in April 2024 [1]. ASIC has extended the AFSL application grace period to 30 Sept, having received roughly 30 applications since October 2023 [1].

What to watch

• Oct 1 – Implementation of the Australian surcharge ban on Visa and Mastercard, which could drive merchant demand for crypto‑payment solutions.
• 9 Apr 2027 – Deadline for most Australian crypto firms to obtain an AFSL, potentially reshaping market competition.
• Regulatory filings – Any new AFSL applications or approvals from ASIC, especially from competitors seeking similar payment‑service authorisations.

Securing the AFSL not only legitimises Swyftx’s expansion into derivatives and payments but also tests whether crypto‑based transaction rails can capture merchant volume displaced by the upcoming surcharge ban. The exchange’s next steps will reveal how quickly the Australian market adopts crypto payments and whether Swyftx can translate regulatory approval into measurable transaction growth.