Australia's Crypto Future: Surge in Demand and Crucial Role of Regulation, says Kraken Exec
Summary:
Jonathon Miller, a Kraken executive, expresses optimism about the future of Australia's crypto industry amid a global rise in crypto demand. He highlights the necessity of clear regulations and sensible government legislation for boosting domestic crypto adoption. Despite a gap in institutional investment compared to the US, there is a significant uptick in interest from retail investors and burgeoning crypto businesses, particularly in stablecoins. The interaction with policymakers has been progressive with emphasis on addressing consumer protection, market integrity and fostering financial innovation. He cautions against localizing regulations too stringently, encouraging global thinking due to crypto's international nature.
Jonathon Miller, an executive from Kraken Australia, is optimistic about the future of the country's cryptocurrency industry, considering the global surge in crypto demand. Miller highlighted the recent global capital investment in Bitcoin ETFs, the active adoption of stablecoins, and BlackRock's $100 million fund initiative on Ethereum as key indicators of a promising crypto economy in the future.
Miller expressed that the favourable trend in crypto demand signifies a bright future for the financial services infrastructure. Although investment from institutional entities in countries like the USA has shown exponential growth, Australia is yet to observe such momentum. However, Miller expressed optimism that it's a potential progress marker.
In Australia, there has been a significant increase in interest particularly from retail investors and budding crypto-based companies. Miller pointed out that the demand for liquidity is the main driving force for these companies to turn to crypto businesses. Predominantly, these businesses are focusing on stablecoins, which are often regarded as the game-changer in the crypto world.
However, the inadequate clarity around regulations and slow legislative progress are potential barriers to widespread crypto adoption in Australia. Despite these challenges, Miller expressed that the interaction with Australian policymakers has been encouraging and their goal is to facilitate the enactment of sensible crypto laws by the government.
In 2023, the Treasury Department proposed that crypto exchanges should obtain a license from the Australian Securities and Investments Commission (ASIC). ASIC's main focus, according to its head Alan Kirkland on March 21, would be to address the "regulatory trilemma" - safeguarding consumers, preserving market integrity, and fostering financial innovation in the upcoming regulatory reforms.
Miller further emphasized the importance of formulating regulations with a global perspective, given the international scope of cryptocurrencies. He cautioned against crafting rules too specific to Australia, urging to keep crypto regulations that efficiently mitigate genuine risks without distorting the unique nature of this digitally native financial system.
Published At
4/1/2024 9:03:33 AM
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