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Fintech Firm With 2m Users Buys Crypto Exchange to Attract Millennials

Fintech Firm With 2m Users Buys Crypto Exchange to Attract Millennials 101
Source: iStock/Gajus

Dutch fintech company BUX has bought Amsterdam-based social cryptocurrency exchange Blockport for an undisclosed amount in a bid to spark interest from young European investors.

BUX says the move will help address “the investing needs of European millennials.”

The fintech firm plans to rename the platform BUX Crypto, and wants to make it available to users in the nine European countries where BUX is currently active.

Blockport last year announced that it was temporarily closing down, citing a lack of funding, following a failed security token offering.

The revamped platform is currently undergoing beta tests with a group of clients, and will launch in the first quarter of 2020, BUX said in a statement. The company will also register the platform with the Dutch central bank, and will seek to retain key Blockport employees.

BUX, which launched in 2014, claims to have over two million users across Europe, and offers short-term, leveraged trading via its BUX X app. Its BUX Zero app, meanwhile, allows customers to make commission-free investing.

The company has raised USD 35 million from the likes of Holtzbrinck Ventures, Velocity Capital, Orange Growth Capital and Initial Capital.

Nick Bortot, the BUX CEO and founder, said that his company’s customers “have long expressed interest in investing in cryptocurrency.”

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He added,

“We have been presented with an opportunity to bring on a committed and enthusiastic team that aligns clearly with our mission at BUX. This mission is to help young Europeans do more with their money.”

Blockport said,

“We have found a great partner to launch our platform with and that the outlook is very promising.”

Blockport also stated that BUX was a “bigger player,” and Blockport will extend BUX product line with their cryptocurrency investment platform.

Bortot said that the deal would also allow BUX users to access a range of financial assets and markets, including Bitcoin, Ethereum and XRP.

BUX says it “welcomes new regulatory requirements in the Netherlands and across Europe,” claiming new rules will “help clear the field of those who chose not to operate with transparency and heighten the reputation, responsibility and integrity of the industry.”

As reported, major crypto derivatives exchange Deribit is moving from the Netherlands to Panama due to the regulatory pressure. The reason behind it is that the Netherlands will most likely adopt a strict implementation of new EU regulations (5AMLD), which would mean that Deribit has to demand an extensive amount of information from the current and future customers.

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