Australian crypto exchange Swyftx on Monday released a new study survey showing that about one million Australians will buy cryptocurrencies for the first time in the next 12 months.
The new survey questioned 2,609 Australians over 18 years of age in early July, with 548 participants of the survey sample identified as current crypto holders.
The research revealed that despite the current “crypto winter”, Australian crypto ownership has grown 4% year-on-year (YoY), reaching 21% this year. This figure is set to increase by another one million new crypto owners in 2023, according to the survey.
The result might bring total crypto ownership in the country to over five million.
While at least one-quarter of Australians are planning to purchase crypto over the next 12 months, the study revealed that Millenials, Gen Zers, Aussie parents, and those in full-time work are most likely to buy the digital assets.
Swyftx’s Head of Strategic Partnerships, Tommy Honan, commented about the development: “On the basis of current growth trajectories in the use of digital assets, we expect half of the adults under 50 in Australia to own or have owned crypto within the next one to two years.”
Honan, however, said the adoption rate might slow over the next 12 months before recovering again as market conditions improve.
The survey revealed that while the bear market knocked down users’ confidence, it identified that lack of sound regulation, overall market volatility, and lack of knowledge about how crypto works as the biggest factors that discourage users towards investing in crypto, especially those who have not yet done so.
Swyftx co-CEO Ryan Parsons said the report indicates that there is clear demand among Australians to buy and use crypto. Still, user hesitancy is due to issues associated with regulation. The comment is reinforced by the former head of risk at Credit Suisse, CK Zheng, who believes that the next crypto bull run will be a result of “regulatory clarity” in the US.
Local Regulators Taking Note
The use of crypto and non-cash payments exploded in Australia during the Covid-19 pandemic as consumers’ lives shifted online. According to government data, as of December 2021, the number of Australians transacting in crypto surged 63% during that year compared with the previous year. Australians are identified to be among the most enthusiastic adopters of crypto, with about 20% owning some, compared to a global average of 11.4%.
With that rapid digital revolution taking place, the country’s regulation is struggling to keep pace and adapt to the crypto industry. The crypto sector is largely unregulated, and the government is currently trying to do some work to get the balance right towards embracing new and innovative technologies while safeguarding consumers.
This comes amid rising concerns from government regulators like the Australian Securities and Investments Commission (ASIC) as to the number of scams involving cryptocurrency, as well as the influence of social media on the industry has been on the rise. Last month, the Australian Prudential Regulation Authority (APRA) released reports warning about the scale and risk management related to crypto assets.
Last month, the Australian Treasury announced a multi-step plan to establish a crypto regulatory framework that aims to be more thorough and better-informed than those previously established anywhere else in the globe.
The key to the government’s approach is to develop market research called “token mapping.” Token mapping will enable officials to view and evaluate trends in Australian crypto markets to best identify how the regulators should regulate crypto assets and related services.
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