Australians Eyeing Up The Alternatives As Banks Place Restrictions On Crypto
We have become accustomed over the past decade or so to seeing crypto swing from boom to bust and back to boom again in dramatic style. It is, after all, what led to the first generation of Bitcoin billionaires and to plenty of less lucky speculators getting their fingers burned. Australia is seeing just such a swing at the moment.
A little over a year ago, the crypto market was booming, especially in Australia, where people were taking to Bitcoin and altcoins in record numbers for a variety of purposes. However, the events of 2022 have been followed by drastic action by first one major Australian bank and then another in restricting transactions with crypto exchanges. Suddenly, crypto has morphed from the must-have instrument to the asset that nobody wants.
Alternative exchanges might be unaffected
The CBA was vague in its references to crypto exchanges and whether restrictions would be placed on some or all crypto exchanges. Reading between the lines, the strong likelihood is that the bank’s primary target is Binance and it is largely mirroring the actions of Westpac a few weeks earlier.
If this is the case, the situation might not be as difficult for Australian crypto users as it initially seemed. It could even be a case that those who hold on tight could have the last laugh, although at this stage that is by no means assured.
As things stand, there are other options. For example, Binance, of no fixed abode, and US-based Coinbase are in the crosshairs of the major banks. Coinspot is Australian owned and has been operating for the past decade without any reported problems. Other exchanges like Cointree and BTC Markets seem to still be accessible too, although it is still too early to say with any certainty that they will be unaffected in the long term.
Bitcoin casino spenders exploring other methods
In terms of average spend per capita, Australia is the biggest gambling nation on earth. Increasingly, this takes place online, especially since the events of 2020 and 2021. The regulatory framework for online casinos is even more complicated than the crypto situation, and crypto has grown in popularity over the past two years as a secure and cost-effective way to transfer funds to and from gambling accounts.
There is nothing to stop them continuing to do so, but the controversy currently surrounding crypto in Australia and the very real possibility of it having an impact on the value of Bitcoin and altcoins could make casino gaming with crypto a little too much of a gamble for some appetites.
There are obvious alternatives such as debit card transfers, but these can take time and there is the constant threat of banks being asked to block transactions with gambling companies. Possibly a better alternative for Australian online casino enthusiasts is the growing number of Neosurf casinos in Australia. This is a prepaid card that is not directly linked to your bank account, a little like the old phone cards. It’s a good way of keeping gambling spend secure, confidential and under your own tight control.
For investors, a diverse portfolio remains the key
It is no surprise to see thousands of Bitcoin holders scrambling over one another to sell, sell, sell. The more it happens the stronger is the urge to follow course. We don’t have a crystal ball and cannot give a definitive answer on whether they are doing the right thing, we can only observe that it is understandable.
Australians deciding to step away from the crypto market have a wide choice of alternative investment types. Australia’s economy is in good health compared with so much of the western world right now, and those looking to the stock market could do worse than add some of the nation’s up and coming tech stocks to their portfolios. Traditional safe harbors such as precious metals also remain safe calls. But for those who invest in crypto, taking the safest option is not always top of the agenda.
The truth is, Bitcoin has been surrounded by an air of uncertainty since the first coin was mined. Those who have profited most from it have leveraged that uncertainty. A logical middle ground would be to follow the accepted practice of maintaining a mixed portfolio. Including some crypto assets withing the mix still makes a lot of sense – just how much is a decision that only you can make.
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