Australia stands on the brink of fostering its next wave of crypto “unicorns,” but regulatory ambiguity remains a hurdle, asserts John O’Loghlen, Coinbase’s APAC managing director.
O’Loghlen underscores the necessity of regulatory clarity in Canberra and among institutional players to unleash the latent talent pool in Australia.
“It’s really important that we get this clarity in legislation around digital assets so that the sector can be properly funded and give the VC community and other investors certainty around it so that we can keep building the next Illuvium or Immutable.”
While acknowledging regulatory progress, such as the Treasury’s consultation paper in October 2023 and informal meetings with policymakers at the Blockchain APAC Summit in March, O’Loghlen notes that it still lags behind the surging retail and institutional demand for crypto.
According to a 2024 investor survey by Australian crypto exchange Independent Reserve, approximately 27.5% of Australians—7.15 million people—now own cryptocurrency, with 35% investing around $500 monthly in digital assets.
O’Loghlen identifies the increasing demand for stablecoins, digital remittances, and various capital-efficient crypto applications in the Australian fintech sector as fertile ground for the next billion-dollar crypto enterprises, akin to Canva, Xero, Atlassian, or Afterpay.
He observes a notable rise in retail demand for crypto products, particularly from two key demographics. Firstly, self-managed retirement funds are gradually diversifying into crypto, albeit in small but significant allocations relative to their portfolio sizes.
“Even if it’s [0.5%] or 1% allocation, when that audience invests, the size of that investment is a considerable multiple of the [younger] cohorts, because their assets under management are significantly sized.”
Secondly, “HENRYs” (High Earners Not Rich Yet), professionals with solid earning potential, are actively educating themselves about crypto.
Looking forward, O’Loghlen reveals Coinbase’s plans to extend its Stand with Crypto campaign to Australia later this year. This initiative aims to enlighten regulators and policymakers about the potential benefits of cryptocurrency through events hosted by senior leadership members.
O’Loghlen’s sentiments echo those of Kraken Australia’s MD Johnathon Miller, who views current market conditions as an “inflection point” for crypto in Australia.