Originally published on: September 11, 2024
As the crypto market continues to evolve, millions of potential Australian investors are biding their time on the sidelines, waiting for regulatory clarity. According to Swyftx CEO, Jason Titman, these investors are poised to enter the market once the dust settles on regulations.
A recent survey conducted by Swyftx revealed that up to six million Australians could potentially dive into the world of cryptocurrencies once regulations are established. The survey also showed that nearly a third of respondents would be more inclined to invest in crypto if it were regulated, while 41% expressed distrust in unregulated digital assets.
Despite the market’s growth, the survey highlighted that many Australians remain hesitant to invest in cryptocurrencies due to a lack of understanding or concerns about regulation. With 20% of respondents having never owned crypto and 43% admitting they lack sufficient knowledge about how it works, there is a significant segment of the population waiting for more regulatory certainty.
Titman emphasized the need for consumer protections to encourage hesitant investors to join the market. Swyftx’s estimates suggest that 3.9 million Australians currently own cryptocurrencies, with an additional 1.3 million considering entering the market in the next year.
While the survey indicated a slight decline in crypto usage in Australia, particularly following Bitcoin’s surge to an all-time high in March 2024, one notable trend was the increased adoption among Gen Z investors. Despite fluctuations in market trends, the majority of investors reported making profits over the past year, with an average gain of $9,600.
As Australia navigates the path towards regulatory clarity, Titman anticipates that crypto adoption may remain stagnant until clear laws are established. He believes that a regulated industry is crucial for driving global crypto ownership to reach one billion users.
Currently, cryptocurrencies are legal in Australia, but the absence of specific regulations for exchanges and custody leaves many investors hesitant to fully commit. As the government works towards implementing comprehensive regulations, the potential for exponential growth in the crypto economy remains on the horizon.
With anticipation building among Australian investors, the crypto market stands poised for significant expansion once regulatory clarity is achieved. As the industry continues to evolve, the path towards broader adoption rests on establishing clear and secure frameworks for investors to navigate the world of cryptocurrencies.