Cryptocurrency exchange Crypto.com has announced the acquisition of Watchdog Capital, a broker-dealer registered with the United States Securities and Exchange Commission.
The move will allow the exchange’s subsidiary in the country to offer stocks and equity options to eligible traders, broadening its suite of financial services beyond crypto. According to an Oct. 31 announcement, Watchdog Capital is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Watchdog Capital was established by Bruce Fenton, a long-time advocate for digital assets.
“We are aggressively working towards integrating traditional financial tools with digital financial capabilities and are doing so while maintaining our focus on building responsibly with the necessary licenses and registrations to operate as the industry’s leader,” Kris Marszalek, CEO of Crypto.com, said in a statement.
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The acquisition comes just a few weeks after the exchange launched legal action against the SEC after receiving a Wells notice from the regulator, joining a series of crypto companies defending themselves against the federal agency.
Crypto.com’s suit against the SEC. Source: Crypto.com
Marszalek announced the lawsuit on Oct. 8, claiming that the SEC has “unilaterally expanded its jurisdiction beyond statutory limits.”
Crypto.com is headquartered in Singapore and officially rolled out its services in the US in March 2022, initially focusing only on institutional investors.
The company announced the suspension of its services in the country in June 2023, citing limited demand amid the crypto winter. Some users on Reddit, however, claimed the platform remained “fully operational” for retail clients.
Crypto.com claims to have more than 100 million users worldwide. It recently announced a partnership with Standard Chartered Bank to enable users in over 90 countries to deposit and withdraw fiat currencies such as the United Arab Emirates dirham, euro and US dollar through its app.
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