Australia is poised to cultivate its own crypto unicorns, asserts John O’Loghlen, Managing Director of Coinbase Asia Pacific. Yet, regulatory ambiguity and entrenched banking sectors impede progress. Despite ANZ’s venture into tokenization, the government and financial institutions remain hesitant.
O’Loghlen envisions Australia as a crypto innovation hub in the coming decade but identifies regulatory clarity as a crucial barrier. Australia’s crypto landscape resembles the regulatory ambiguity seen in the United States. While not overtly opposed to digital currencies, Australia’s regulatory framework lacks the conducive environment for growth. Though recent initiatives, such as consultations with industry leaders by the Albanese government, signal progress, O’Loghlen believes policymakers are trailing behind.
“It’s really important that we get this clarity in legislation around digital assets so that the sector can be properly funded…I don’t think the penny’s dropped in Canberra or on the high street in terms of just how much great human capital there is in Australia.”
Supporting O’Loghlen’s stance, the Independent Reserve Crypto Index reveals a surge in digital asset ownership in 2024, nearing the record highs of 2021. Should Bitcoin’s momentum persist, 2024 could witness peak crypto adoption in Australia.
Amid challenges faced by Coinbase in the US, particularly regulatory scrutiny under Gary Gensler’s leadership, O’Loghlen stresses the importance of open dialogue with the Australian government to avert similar issues.
“It’s important that people in Canberra, government representatives and policymakers, can see the real use cases for entrepreneurs and founders who are saving money and getting utility out of crypto.” — John O’Loghlen, Coinbase’s Asia Pacific Managing Director.