Australia is poised for the emergence of new billion-dollar crypto startups, known as “unicorns,” but regulatory clarity is needed for this to happen, according to John O’Loghlen, the APAC managing director of Coinbase. O’Loghlen believes that policymakers and large institutional players in Canberra and on the high street are not aware of the significant human capital in Australia. While some progress has been made in terms of regulations, such as the Treasury’s consultation paper in October 2023 and a meeting with policymakers at the Blockchain APAC Summit in March, there is still a lag in meeting the growing demand for crypto from both retail and institutional investors.
A recent survey by Australian crypto exchange Independent Reserve revealed that 27.5% of Australians, equivalent to 7.15 million people, currently own cryptocurrency. The survey also found that 35% of Australian crypto investors invest around $500 per month in digital assets.
O’Loghlen highlighted the increasing demand for stablecoins, digital remittances, and other capital-efficient applications of crypto in the Australian fintech industry. He believes that these areas present opportunities for the next billion-dollar crypto company, similar to successful companies like Canva, Xero, Atlassian, and Afterpay.
O’Loghlen also noted the growing interest in crypto investment from two specific groups. The first group consists of self-managed retirement funds divesting into crypto, despite the small size of their portfolios. The second group, referred to as “HENRYs” (High Earners Not Rich Yet), includes working professionals with good earning potential who are taking the time to educate themselves about crypto.
Looking ahead, Coinbase plans to expand its Stand with Crypto campaign to Australia later this year. The company intends to host events with its senior leadership to help regulators and policymakers understand the potential benefits of cryptocurrency. O’Loghlen emphasized the importance of showcasing real use cases to government representatives and policymakers in Canberra.
O’Loghlen’s views align with those of Johnathon Miller, the managing director of Kraken Australia, who believes that the current market conditions in Australia represent a turning point for crypto.
In a separate interview, Synthetix founder Kain Warwick expressed the opinion that it is the decentralized finance (DeFi) sector that needs improvement, rather than the overall market.