As we approach 2024, Bitcoin halving the crypto assets has established a strong upward trajectory. The bullish outlook of the crypto sector has captivated the interest of key industry players.
Speaking at the Grand Prix event in Melbourne, the Kraken Australian chief executive Jonathan Miller was pleased to state that crypto adoption has been on the rise. The executive admitted the Australian crypto industry is well poised to tap the benefits of the global inflection point for crypto demand.
Crypto Demand Reaches Inflection Point in Australia
The executive argued that Australia would benefit from the crypto sector if only legislators agreed to make informed decisions. Reflecting on the recent development within the digital industry, Miller noted that investors are willing to invest their capital in Bitcoin exchange-traded funds (ETFs) to generate considerable returns.
The CEO noted that the growing adoption of stablecoin and the ongoing efforts to tokenize real-world assets support the growth of the digital sector. Citing BlackRock’s recent investment to tokenize funds on Ethereum, Miller expected the crypto sector to yield positive outcomes.
The executive believes that the crypto demand in Australia has reached an inflection point. Assessing the current crypto market, Miller has a strong belief that the Australian crypto market is at a pivotal point to blossom.
The CEO expressed his optimism that crypto will become a critical tool for the financial sector. Miller anticipates that the Australian demand for crypto among institutional clients will soar just like in the US.
At the moment, the leading asset managers in the United States, such as BlackRock and Fidelity, are advising clients to invest their assets in Bitcoin to seize viable opportunities in digital sector.
Growing Demand for Crypto Assets
He argued that even though the crypto adoption in Australia is rising silently the retail clients have demonstrated their interest in crypto projects. The impressive adoption of crypto in Australia has motivated more investors to acquire more digital assets.
The CEO noted that the growth of the digital sector has challenged businesses to leverage crypto and blockchain technology in their businesses. The executive confirmed that the Kraken team has received multiple requests for liquidity from businesses.
In his statement, the CEO noted that most crypto firms based in Australia focus more on stablecoin than other crypto assets. The executive noted that the lack of regulatory clarity in Australia hinders crypto adoption in the region.
He blamed the Australian regulators for delaying the enforcement of a comprehensive regulatory framework for digital assets. Miller argued that the regulatory uncertainty for digital assets has scared away potential investors.
Australia Seeks to Develop Comprehensive Framework for Digital Assets
In his statement, the CEO confessed that Kraken’s recent meeting with the Australian policymakers revolved around the need to enact clear rules for digital assets. During the meeting with the Australian Treasury, Miller stated that the discussion was positive and focused on the significance of implementing clear crypto laws.
With the existing regulatory gap in Australia, the executive confessed that it might be hard to regulate crypto assets fully. In October 2023, the Australian Department of Treasury published a consultation report outlining the licensing regime for financial institutions.
An announcement conveyed by the head of the Australian Securities and Investments Commission (ASIC), Alan Kirkland, revealed that the regulators plan to address the regulatory trilemma facing the supervision of digital assets.
The official anticipates that the new rules will focus on improving consumer protection, financial innovation, and market integrity. In support of Kirkland’s remarks, Miller urged the regulators to consider the usage of the crypto in global markets while developing the new rules.
If Australian lawmakers fail to consider the diverse use cases of crypto when formulating the new rules, it could lead to over-engineer localization. The CEO described crypto assets as fourth-dimensional currencies with distinguished features.
Miller noted that the development of inappropriate regulation could position crypto as a three-dimensional currency. He encouraged the regulators to develop rules that address the inherent risk of digital assets.
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