According to Cointelegraph, millions of potential Australian crypto investors are hesitant to enter the market due to unclear regulations, as stated by Jason Titman, CEO of Swyftx. Titman predicts that between two to six million Australians will invest in crypto once regulatory clarity is achieved.
A survey conducted by Swyftx revealed that nearly a third of respondents would be more inclined to buy crypto if it were regulated, while 41% expressed distrust in the market without regulation. Of the 2,229 adult respondents, 20% had never owned crypto, and 43% admitted to lacking sufficient knowledge about how crypto works. The majority of respondents cited concerns about regulation and a lack of understanding as reasons for not investing.
Titman emphasized the importance of consumer protections, stating, 'We have a wall of investors right now sitting on the sidelines waiting for the security of consumer protections.' He added that regulated national markets would attract more investment, utility, security, and interest in the sector.
The survey estimated that 3.9 million Australians currently own crypto, with an additional 1.3 million considering entering the market within the next 12 months. Despite Bitcoin reaching an all-time high of $73,750 in March 2024, crypto usage in Australia has slightly declined. The number of Australians owning cryptocurrency dropped from 4.5 million in 2023 to 3.9 million. The overall percentage of digital asset owners decreased from 23% to 20%, although Gen Z saw an 11% increase in usage.
Most investors reported making a profit over the past 12 months, with approximately 82% claiming gains, and the average profit estimated at $9,600. Titman expects crypto adoption to remain stagnant until regulations are implemented, noting that the risk of entering an unregulated market deters many investors. He believes that international crypto adoption will grow exponentially with regulation, potentially reaching one billion global crypto owners.
Currently, cryptocurrencies are legal in Australia and are treated as property for tax purposes. Investors must disclose profits to tax authorities. The government has pledged to introduce exchange and custody regulations, but no firm rules have been established yet.
