Nikolas Sargeant
Millions of potential Australian crypto investors are holding back from entering the market, awaiting clearer regulations, according to Jason Titman, CEO of local crypto exchange Swyftx. The company's recent survey suggests that between two to six million Australians could join the crypto market once regulatory uncertainties are resolved.
Regulatory Clarity: The Key to Unlocking Australia's Crypto Potential
Swyftx's survey of 2,229 adult respondents unveiled compelling insights into the Australian crypto landscape. Nearly a third of participants expressed increased likelihood to invest in crypto if regulated, while 41% cited lack of trust in unregulated crypto markets. The survey also revealed that 20% of respondents had never owned crypto, and 43% felt they lacked sufficient understanding of how crypto works.
"We have a wall of investors right now sitting on the sidelines waiting for the security of consumer protections," Titman stated. He emphasized that regulated national markets would attract more investment, utility, security, and interest in the sector.
Currently, Swyftx estimates that 3.9 million Australians own crypto, with an additional 1.3 million considering entry within the next 12 months. Despite Bitcoin reaching an all-time high of $73,750 in March 2024, overall crypto usage in Australia has seen a slight decline, dropping from 23% to 20%. However, Gen Z bucked this trend with an 11% increase in usage.
Encouragingly, about 82% of investors reported profits over the last 12 months, with Swyftx estimating an average gain of $9,600.
The Road Ahead: Balancing Regulation and Growth in Australia's Crypto Landscape
Titman predicts that crypto adoption will "track sideways" until Australia implements comprehensive regulations. He noted, "The reality is that there are a finite number of investors who are willing to take on the risk of entering an unregulated market. At some point, without regulation, adoption is going to slow."
The CEO believes that a regulated industry is crucial for reaching one billion global crypto owners. He asserts that international evidence supports the idea of exponential growth in the crypto economy once regulation is in place.
While cryptocurrencies are legal in Australia and subject to property laws, with profits requiring disclosure to tax authorities, the regulatory landscape remains incomplete. The government has committed to introducing exchange regulations and custody rules, but concrete measures are yet to be implemented.
As Australia stands at this crypto crossroads, the potential for significant market growth is evident. However, the realization of this potential hinges on the establishment of a clear and comprehensive regulatory framework that can instill confidence in millions of prospective investors currently watching from the sidelines.
