Australia is on the brink of a significant shift in cryptocurrency demand, according to the Managing Director of Kraken in Australia. In an interview during the Formula One Grand Prix in Melbourne, the executive highlighted global factors indicating a positive trajectory for crypto, provided Australian legislators make prudent decisions.
Miller emphasised the growing capital inflow into Bitcoin exchange-traded funds, the increasing acceptance of stablecoins, and BlackRock’s initiative to establish a $100 million tokenisation fund on Ethereum as indicators of an optimistic outlook for crypto in the near future.
“We are now at a positive inflection point when it comes to demand. It feels like we’re well and truly back in a positive place for crypto,” said Miller.
While acknowledging the surge in institutional interest in crypto in the United States, Miller noted that Australia was yet to witness a similar level of activity. However, he pointed out a noticeable rise in interest from retail investors and crypto-related businesses within the country.
“We’re definitely not seeing that level of action in Australia, but it’s certainly a stepping stone toward that,” he said.
I sat down with the @krakenfx team recently and talked about some of the key themes from 2023 and what to look forward to in 2024. One of those big ones was institutional adoption. At Kraken, we’re building for this market! #crypto #kraken pic.twitter.com/Wu8hiTFveW
— Jonathon Miller (@jdesmondmiller) December 23, 2023
Miller identified regulatory uncertainty and slow legislative progress as significant obstacles hindering crypto adoption in Australia. Despite this, he expressed optimism regarding the positive engagement with policymakers and emphasised the need for sensible regulations.
The recent proposal by the Department of the Treasury to mandate crypto exchanges to obtain a financial services licence and ASIC’s focus on balancing consumer protection, market integrity, and financial innovation were noted as steps in the right direction. Miller stressed the importance of crafting legislation that acknowledges the global nature of crypto while avoiding overly localised regulations.
“You really don’t want to pull this fourth-dimensional money into three-dimensional space-time. At the end of the day, you want to keep it in its plane and then make sure the regulations actually mitigate the real risks,” he said.
In summary, Miller sees Australia positioned favorably amidst a global upsurge in crypto demand, contingent upon regulatory clarity and conducive legislation to support the industry’s growth.