Table of Contents
- 1 Introduction
- 2 What Is Cryptocurrency?
- 3 Australia, The Third Largest Crypto Holder
- 4 Crypto Trends In Australia
- 5 Rising Popularity Of NFTs In Australia
- 6 Major Facts About Growth Of Cryptocurrencies In Australia
- 7 Future Cryptocurrency Regulation In Australia
- 8 Conclusion
The Cryptocurrency market is growing in popularity and adoption, with Australia being no exception. Australia is embracing Cryptocurrency as the new trend. In doing so, it is keeping up with the times. Although there have been many people who do not believe in Cryptocurrency, there are others who see the benefits.
If you want to make money while keeping your privacy intact, Cryptocurrency may be a good idea for you. Exchange platforms like the bitcoin loophole give you the extra edge with security, transparency, and information when you plan to trade Cryptocurrencies. Here we shall discuss some of Australia’s growing trends and adaptability to this new digital asset.
What Is Cryptocurrency?
A cryptocurrency is a new form of payment that has been rapidly growing in popularity. The use of Cryptocurrency may be used to pay for goods and services, as well as other types of investment.
There are many benefits to using Cryptocurrency over traditional currency.
For example, Cryptocurrencies are usually more secure than fiat currencies because they are not regulated by any central banks or governments.
Because they are decentralized and distributed across the world, there is no single point where hackers can gain access to your funds.
Australia, The Third Largest Crypto Holder
Australia ranks among the wealthiest countries in the world. On the 19th of May 2017, the Australian parliament passed legislation to amend Australian taxation laws for the first time to provide a legislative basis for Blockchain transactions.
The amendments mean that transactions using a distributed ledger technology system are now considered akin to a currency exchange. Therefore, no taxes will be payable on the transactions.
This is a positive step for the Cryptocurrency industry, providing a level of stability and clarity surrounding the use of digital assets in the country.
Australia has recently become the third largest country to adopt Cryptocurrencies after Japan and the United States.
There’s a growing trend in Australia, with the government acknowledging Cryptocurrency and discussing the development of the technology.
Crypto Trends In Australia
In 2021, we saw the popularity of Cryptocurrencies skyrocketing, with entire nations, institutions, and investors getting involved in it. We have seen great development in these sectors in the last few years, but the Crypto native knows that his best is yet to come.
Whether we are talking about Crypto regulations providing an appropriate framework for the industry to grow or more investors coming on board the Crypto industry, we believe that 2022 will be a great year for Cryptocurrencies – both in Australia and Globally.
Here are a few trends that you need to look out for.
1. Cryptocurrency Will Be Regulated In 2022-23
Cryptocurrency is not going anywhere. Even though the price of Cryptocurrency has plummeted and reached below $20,000 in 2022, experts believe that this is a step back to take multiple steps forward. While the popularity of Cryptocurrency will continue to rise, robust regulation might take time to roll itself out.
Seeing how new frameworks have been introduced by the Australian Treasury, we can expect the regulatory framework to be completed by the end of 2022.
In 2021, we saw the recommendation from the Senate Committee inquiry demonstrating their efforts towards regulating eh Cryptocurrencies. If these recommendations and frameworks are adopted, Australia will become the new center of attention in the Crypto industry.
Many experts believe that the Crypto exchange regulation will also enhance the tax privacy for retail investors by clarifying the different types of asset classes present in the market.
2. Increased In Institutional Adoption
While Institutional investors have always kept their distance from Cryptocurrency investment because of the high volatility and risk that comes with it, the high-profit margin has made them jump on the bandwagon in 2021.
In 2021, we began to see a major change in institutional investing behavior. They started proactively seeking business opportunities in the Crypto space. This investment has not only been led by tech companies but also by other proprietary investment companies.
This trend is likely to accelerate in 2022. After all, there is no reason to believe that the Cryptocurrency market will be saturated anytime soon. Blockchain technology and Cryptocurrency is still in their early stage.
So, there will be difficulties, no doubt. But, the silver lining is that it’s a growing trend, and people will eventually learn to cope with the challenges and issues.
Just like Metaverse and NFTs, Institutional adoption might become the buzzword in the Crypto industry.
3. The Crypto Industry Will Take Steps To Mitigate Its Environmental Impact
While Cryptocurrency is one of the growing industries in the investment market, there are people who are concerned about the negative impact. Crypto mining uses a lot of power to create new Cryptocurrencies. That means more resources are used.
As the world is taking steps to minimize the use of resources, there is an increased urgency for the Crypt industry to tackle the issue and reduce its carbon footprint. Decarbonization of the Crypto mining process will boost the investors’ confidence and encourage them to invest in Crypt more confidently.
Crypto miners will turn towards greener resources to power the mining process. In fact, we are already seeing many mining pools using renewable sources of energy for the Proof-Of-Stake works.
As the Crypto industry takes its steps towards becoming more green, investors will not only have the business factor to invest in Cryptocurrencies and Blockchain but will also be able to pursue a common goal, i.e., Save The Planet.
Rising Popularity Of NFTs In Australia
While a lot of people may know about Bitcoin and other Cryptocurrencies, not everyone is aware of the growing trend toward non-fungible tokens (NFTs).
These new digital asset types have become extremely popular in recent years and will continue to be used to move digital assets.
NFTs let gamers collect, trade, and sell their digital items as if they were physical items. These tokens can represent things like clothes, cars, and even gold.
They have become popular online because they provide a unique way for games to interact with the real world and let players simulate traditional gaming activities.
This popularity has certainly reached Australia. Today, with more than a million Aussies owning NFTs and making profits, we can see where the popularity of NFTs has skyrocketed.
Major Facts About Growth Of Cryptocurrencies In Australia
Let us take a look at some highlighting factors that will help us trace the growth of the Crypto industry in Australia—
- Cryptocurrency has been growing in popularity since 2009, when the first exchange was launched in 3 days.
- Bitcoin trading has grown exponentially in the first half of 2017, and its market cap has already exceeded 70 billion.
- Top Cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Dash, etc., are the most traded currencies in Australia.
- Australia is the third largest country to adopt Cryptocurrency.
- It’s the first country outside of the United States to adopt Bitcoin ATMs and has the largest amount of bitcoin search queries.
- Pretty soon, you might be seeing Cryptocurrency ATMs in every bank, coffee shop, and the trading floor across the country.
Future Cryptocurrency Regulation In Australia
In late 2021, Australian Federal Treasurer Josh Frydenberg laid out the plans for the payments. He came up with different reforms to revamp the payment structure in Australia. The plan includes a new dedicated licensing framework that the Australian Crypto Exchange platforms need to comply with. This regulation will also be extended to the businesses that hold Crypto assets on behalf of the customers.
In addition to the reforms, the treasury also announced a consultation on the possibilities for an Australian Central Bank Digital Currencies. Although the Reserve Bank Of Australia has clearly stated that there is no strong policy case, they are supporting the CBDC to keep up the pace with the changing fintech landscape.
Australia’s Cryptocurrency regulations have shown a fast-moving approach. Perhaps they are well aware of where the world is headed to. In announcing the planned reforms, it is certain that Australia’s Treasury is planning to set regulatory milestones by the end of 2022.
Australia’s proactive approach toward Cryptocurrency regulation reflects the efforts they have put into the Cryptocurrency industry in the last decade. Yes, there are still some major risks that need to be taken care of. But you will never know the solution by just talking about theories.
The way Australia is dealing with Cryptocurrencies, we can even say that the Australian Government might be the first to adopt Cryptocurrencies in their financial infrastructure.
Australia has generally been a market where Cryptocurrency has thrived. However, this is slowly changing since the government decided to start regulating Cryptocurrency exchanges and other services.
Due to such regulations, many exchanges started closing their doors in Australia. But Australia’s interest in digital assets and highly adaptable nature for all new technologies will make way for Crypto growth in the future.