Some 20 per cent of Australian adults hold some form of cryptocurrency, according to Duff Gordon, but the nation finds itself at a regulatory impasse, preventing further adoption and investment.
“We lack a licensing framework for crypto asset providers, so we’re lacking certainty,” he said. “This government and the previous government have done a lot of work with the industry, so we’re supportive of the direction, but we need it to be actualised.
I don’t really see a role for [crypto] in, certainly in the Australian economy or payments system
RBA governor Michele Bullock
“It hasn’t been prioritised by the (Labor) government, so we would love for them to step forward.”
It comes after Reserve Bank governor Michele Bullock this month poured water on cryptocurrency, saying it has no role in the Australian economy or payments system.
“I don’t understand it,” she said last Thursday. “But, you know, I don’t really see a role for it in, certainly in the Australian economy or payments system.”
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ASIC chair Joe Longo has also dismissed the recent rally in bitcoin and other crypto assets, saying it was an example of “the bigger fool theory”: the idea that people can make money on overvalued assets if those assets can later be resold at an even higher price to a bigger “fool”.
ASIC has indicated it will regulate crypto under existing financial product laws.
Crypto has commonly been linked with scams, fraud and criminal activity, and Duff Gordon acknowledged crypto’s “image problem” but said that hadn’t stopped major financial institutions globally, including Australian banks, from exploring blockchain technology for more efficient digital payments.
“Yes, there were hiccups, but the industry has matured,” he said.
Michael Chmielewski, head of growth at Australian cryptocurrency exchange Day1x, called crypto’s image problem a classic “few bad apples” situation.
“Much like the early days of the internet and the dotcom bubble, though, the strongest companies who take care of clients the most will ultimately rise to the top,” he told this masthead.
“Crypto’s path forward is through delivering real-world value … The goal is to reach a point where people use crypto and blockchain technologies without needing to understand them, just as they now use the cloud without thinking about the underlying tech.”
The Albanese government’s special envoy for cybersecurity and digital resilience, Andrew Charlton, said the government is “100 per cent committed to delivering reform.”
“I acknowledge and support the crypto industry’s proactivity in helping to shape sensible regulation,” he said.
“Our focus is on regulating exchanges - not specific tokens. It is too big to get wrong, and we’ve been working constructively with industry to get the detail right.
“The Coalition failed to act for a decade and have no policy when it comes to crypto. We’ve taken the time to consult with stakeholders so that we can get this right. Our approach will protect consumers and support innovation.”
Liberal senator Andrew Bragg welcomed the launch and said the crypto sector would benefit from stronger advocacy.
“Labor has dropped the ball and they have been able to get away with it. We need hard timetables to get things done otherwise we will be a crypto backwater,” he said. “Stand with Crypto can help us avoid that outcome.”
While Duff Gordon remained tight-lipped about specific meetings during his visit, he confirmed ongoing discussions with Australian officials.
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