Australian crypto investors ‘sat on the sidelines’ for clearer rules: Swiftex CEO
Millions of potential Australian crypto investors are “sitting on the sidelines” until regulations surrounding the market are clarified, the head of a local crypto exchange says.
Swiftex CEO Jason Titman told Cointelegraph that his company predicts between two and six million Australians will get into crypto “when the dust settles on regulation”.
In a Swyftx survey, nearly a third of respondents said they would be more likely to buy crypto if it was regulated, while 41% said they distrusted crypto.
Of the survey's 2,229 adult respondents, 20% have never owned crypto, and 43% of those surveyed said they don't know enough about how crypto works.
Most respondents said they didn't know enough about how crypto works or were too concerned about the regulation to consider investing. Source: Swyftx
“We now have a wall of investors,” Titman said.
“When national markets are controlled, the sector will get more investment, more resources, more security and more demand.”
A study by Swyftx estimated that 3.9 million Australians own crypto, and another 1.3 million are considering entering the market in the next 12 months.
A Swiftex survey found that crypto usage in Australia has fallen slightly despite bitcoin reaching a record high of $73,750 by March 2024.
An estimated 3.9 million Australians currently own cryptocurrency, compared to 4.5 million in 2023. Source: Swyftx
The overall number of people owning digital assets also dropped from 23 percent to 20, but one age bracket, Gen Z, saw an 11 percent increase in usage.
Most investors also reported making a profit in the past 12 months, with 82% saying they did. Swyftx estimates that the average profit was $9,600.
Adoption “sideways” until laws are made
Titman expects crypto adoption to “track on the sidelines” until the country moves on regulations.
“The reality is that there are a small number of investors who are willing to take the risk of entering an unregulated market,” Titman said. “At some point, without regulation, adoption will slow down.”
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“The evidence coming out of Australia strongly supports the idea that the global crypto economy will grow exponentially when regulated. We certainly wonder how a regulated industry could hit a billion global crypto holders.”
Cryptocurrencies are currently legal in Australia and are subject to laws that treat them as property. People who spend profits on investments must report the transaction to the tax authorities.
The government has promised to introduce exchange rules and protection, but there are still no strict rules.
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