For the first time ever, the true scale of the Australian digital currencies market has been revealed. It’s already far bigger than most believed.
What are the implications for Australian stakeholders?
While the volume of trade conducted offshore is unclear, the staggering domestic growth revealed by research conducted by Accenture and the Australian Digital Currency Association (ADCA) makes it certain that greater industry integration, safe-guarding and oversight is needed in Australia’s cryptocurrency sector. For example:
- More consumer education - Given the scale of the market, the industry and government should work together to help consumers understand how to use and invest in cryptocurrencies responsibly.
- Stronger relationships with banks - Significant funds are passing between DCEs and Australian banks with limited visibility. With more collaboration and integration, DCEs and banks can ensure stronger oversight and governance procedures are put in place.
- Further regulation to protect consumers - In addition to the new anti-money laundering and counter-terrorism financing regulations, regulators should move to increase consumer protection from fraud and system failures (e.g. service provider default or cybersecurity breach). This could potentially involve a special Australian Financial Services Licence for DCEs.
- Superior local trading required – the industry and government should ensure local industry remains strong, secure and efficient to out-compete offshore exchanges.
Dig into the details
Explore our research into the Australian digital currencies market. We share our findings, provide analysis of the various currencies and outline the implications for industry, regulators and banks.