Australia Primed for Next Wave of Crypto Unicorns, Needs Regulatory Clarity: Coinbase's APAC Chief
Summary:
Coinbase's APAC Managing Director, John O’Loghlen, anticipates Australia hosting a surge of billion-dollar crypto startups, given there is enhanced legislative clarity around digital currencies. Although he acknowledges some recent regulatory advancements, he emphasizes the need for crypto-friendly policies due to the sharp rise in crypto demand among retail investors and institutions. Recognizing the growing interest from self-managed retirement funds and 'HENRYs' - High Earners Not Rich Yet, he sees the potential for Australia to produce the next multi-billion crypto company. Coinbase is planning to launch its Stand With Crypto campaign in Australia to further educate regulators and policymakers about cryptocurrency's potential benefits.
John O’Loghlen, the managing director for APAC at Coinbase, has highlighted that Australia is ripe for the emergence of new crypto-startups valued at over a billion dollars. However, he points that such potential can only be realized once there's greater regulatory certainty concerning digital currencies. He opined that policymakers and traditional corporate giants have probably not yet noticed Australia's wealth of talent. O’Loghlen believes legislative clarity concerning digital assets is crucial for the sector's appropriate financing. He also insists that such crucial reforms will also offer necessary certainty to venture capitalists and other prospective investors.
O’Loghlen noted that there have been some regulatory improvements, such as the Treasury's consultation paper of October 2023, as well as informal discourses with policymakers during the Blockchain APAC Summit in March. Still, he feels these are not enough considering the rapidly growing interest in cryptocurrency among retail investors and institutions. A 2024 investor survey by the Australian crypto exchange, Independent Reserve, estimated that around 27.5% of Australians, or approximately 7.15 million people, now own some form of cryptocurrency.
O’Loghlen stressed the escalating demand for stablecoins' uses, digital money transfers, and other capital-efficient crypto applications in Australian fintech. He expressed optimism that these developments might spawn the next multi-billion crypto enterprise. He mentioned companies such as Canva, Xero, Atlassian, and Afterpay as examples of Australian companies now worth billions.
Reflecting on the retail landscape, he pointed out two key areas. Firstly, there's significant interest from self-managed retirement funds that are shifting towards crypto, even though the amounts involved relative to their total portfolio size are minor. Secondly, O’Loghlen highlighted increasing investments coming from high-earning professionals who are monetarily comfortable and are educating themselves about cryptocurrencies, a group he referred to as "HENRYs" - High Earners Not Rich Yet.
O’Loghlen mentioned that later this year, Coinbase intends to extend its Stand with Crypto campaign to Australia. There are plans for senior leaders from Coinbase to organize several events that aim to facilitate a better understanding amongst regulators and policymakers about the potential advantages of cryptocurrency. He stressed the importance of regulators in Canberra acknowledging not only the real applications of cryptocurrencies but also the cost-saving benefits they offer. Johnathon Miller, of Kraken Australia, shares O’Loghlen's sentiment, saying that current market conditions represent a turning point for cryptocurrency in Australia.
Published At
4/22/2024 2:20:00 AM
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