Fintech company buys a social exchange to attract millennials

The Dutch fintech company BUX has purchased Blockport, an Amsterdam-based cryptocurrency exchange social network, in an attempt to spark interest from young European investors. The purchase amount has not been declared, but BUX states that the move was made with the intention of responding to the "investment needs of European millennials".

What are the plans

The fintech company plans to rename the BUX Crypto platform and make it available to users in the nine European countries in which BUX is currently active.

Last year Blockport announced that it would temporarily close its doors, citing a lack of funding following the failure of a Security Token Offering (STO).

The renewed platform is currently in beta testing with a group of customers, and will be launched in the first quarter of 2020, BUX said in a statement. The company will also register the platform with the Dutch central bank and try to retain key Blockport employees.

Investment funds

BUX, launched in 2014, claims to have over two million users across Europe and offers short-term leveraged trading via its BUX X app. Its other BUX Zero app, meanwhile, allows customers to make investments without commissions. The company raised US $ 35 million from the collaboration of Holtzbrinck Ventures, Velocity Capital, Orange Growth Capital and Initial Capital.

Nick Bortot, CEO and founder of BUX, said that his company's clients "have long expressed interest in cryptocurrency investments." He added: "We have been given the opportunity to involve a committed and enthusiastic team that clearly aligns with our mission in BUX. This mission is to help young Europeans to do more with their money. "

Blockport said "We have found a great partner to launch our platform with and the prospects are very promising." He also said that BUX was a "bigger player" and that he is working to extend the new partner BUX's product line through their cryptocurrency investment platform.

What assets it can offer

Bortot predicts that the deal will also allow BUX users to access a range of financial activities and markets, including Bitcoin, Ethereum and XRP.

BUX declares that it "welcomes the new regulatory requirements in the Netherlands and throughout Europe", stating that the new rules "will help clarify the position of those who have chosen not to operate transparently and increase their reputation, responsibility and the integrity of the sector ".

As reported, the main platform for the exchange of cryptocurrency derivatives Deribit is moving from the Netherlands to Panama due to regulatory pressure. The reason is that the Netherlands is likely to adopt strict implementation of the new EU regulations (5AMLD), which would mean that Deribit should request a large amount of information from current and future customers.