The cryptocurrency industry in Australia is currently at a very delicate point where regulators and lawmakers need to make decisions that will improve the sector. Kraken Australia CEO Jonathan Miller shared insights into this, among other things in the crypto market.
Speaking at a recent interview, the Kraken executive mentioned that one of the major factors driving optimism is the Spot Bitcoin exchange-traded funds (ETFs). Additionally, he noted that stablecoins have also witnessed a rise in adoption while noting BlackRock’s recent $100 million tokenization fund launch on Ethereum. Miller mentioned that these events are reason enough to take a bullish sentiment on crypto in the next few months.
Miller noted that the market is now at a positive inflection point when it comes to demand, noting that the market is now truly on a positive path. He said that all this is proof that this is the infrastructure that we need for the future. Miller noted that while the United States is at the forefront of institutional adoption of crypto, Australia is somewhat behind in that regard. Miller opined that although there is little action in Australia in that aspect, there is a move towards that direction.
Increased interest and regulatory challenges
Jonathan Miller pointed out that there has been increased interest from retail traders and businesses involved in crypto in the country. Miller mentioned that adoption is on the increase as people are investing and building businesses around cryptocurrencies. He noted that his firm has been approached by a lot of businesses seeking liquidity. Miller said most crypto businesses in Australia are tilting towards stablecoins, which he describes as the industry’s “killer app.”
In his opinion, the biggest challenge facing the cryptocurrency industry is the lack of clarity when it comes to regulation. He noted that it is hard to invest in the crypto space in the country due to uncertainties. However, he mentioned that his firm has been in positive talks with certain policymakers in Australia. Miller said that the remaining obstacle is ensuring that the government enacts sensible laws for the sector.
ASIC has been focusing on what it solving what it describes as a ‘regulatory trilemma. According to its Chief Alan Kirkland, the regulator needs to consider consumer protection, market integrity, and financial innovation in upcoming regulatory reforms for the crypto industry. However, Miller noted that good regulation should consider the international nature of digital assets. He said that the regulators should be careful not to make regulations specific to Australia as it could accidentally “overengineer localization.”
