Australians head to the polls on 3 May at a pivotal moment for cryptocurrency adoption in this country.
On one hand, interest in digital assets is booming. Somewhere between 25 and 31 percent of Australians have either owned or currently hold digital assets – a rate of adoption among the highest in the world. Institutions are following suit, with AMP in 2024 becoming the nation’s first superannuation fund to invest in Bitcoin.
On the other hand, regulation has stalled. Despite early leadership – including a parliamentary inquiry into “digital currency” way back in 2014, a debanking inquiry in 2021, and more recent consultations on regulating intermediaries like Coinbase – Australia’s policy environment for crypto remains frustratingly vague and underdeveloped.
It’s now 2025, and we still don’t have clear rules to support innovation, protect consumers, and attract long-term investment.
This lack of regulation or recognition is hurting everyone – founders, investors, and everyday Australians. Talented Web3 builders are heading offshore. Every day, we’re seeing local capital and talent flow to friendlier jurisdictions like Singapore and Dubai, where businesses know where they stand and can invest and grow in confidence.
A global race is underway to lead the future of crypto. India and Pakistan have both made moves to embrace digital assets, and the U.S. is taking concrete steps to cement its leadership position. President Donald Trump, upon being elected, vowed to make the United States the “crypto capital of the world”.
Meanwhile, Australia’s major banks are shutting Australians out of their bank accounts for investing in crypto. This is despite crypto assets being owned by on- in-five Australians, superannuation funds, and even the banks themselves.
According to a 2023 survey by the Digital Economy Council of Australia (DECA), some 75 percent of respondents reported being debanked due to a legitimate connection to crypto, blockchain or Web3 industries. Frustratingly, only eight percent were provided with a reason.
The impact goes beyond products. It goes to confidence. It goes to the next generation of global companies. It’s unlikely the world’s next Coinbase or Circle will be founded in Australia – not because we lack the talent, but because we lack the ambition and urgency to support them.
Australia’s next government has an opportunity to change that.
Australia’s major parties have a history of delivering meaningful financial reforms, from Labor’s introduction of the Superannuation Guarantee in 1992 to the Coalition’s implementation of a national Goods and Services Tax (GST) system in 2000. If Australia is to continue this legacy, digital assets must be the next frontier of financial reforms.
The next government can chart a new course and re-establish Australia as a leader in financial innovation. We believe that starts with five clear, actionable steps:
1. Launch a crypto industry-government taskforce in the first 100 days.
To promote Australia as a hub for crypto, Web3 and blockchain innovation, establish a dedicated working group to fast-track the design and delivery of fit-for-purpose crypto legislation. This should include industry and consumer representation and have a clear mandate to bring a bill to Parliament before the end of the year.
2. Act on debanking.
Our debanking problem is growing. Businesses and individuals are being locked out of financial services without explanation for wanting to either operate, or invest in, digital asset ventures as well as be restricted from using their own money to purchase digital assets. It’s an approach that treats everyday Australians like criminals and it’s costing us innovation, investment, and basic financial freedom.
Meanwhile, many of the very same banks are trading crypto through their institutional desks, recognising the legitimacy and opportunity of the asset class, while retail and business customers are penalised for doing the same.
The Council of Financial Regulators made recommendations in 2022, and although both parties have voiced intent to address debanking, there’s been no action. The next government must prioritise this.
3. Enable crypto-backed financial services.
Australians should be able to use their crypto the way they use other assets – to borrow, invest, or access financial products. A licensing regime that gives clarity to both service providers and consumers would unlock this potential.
4. Provide a pathway for stablecoin adoption.
Stablecoins have the power to modernise our payments system, enabling faster, cheaper, and more efficient transactions. The next Government should prioritise legislation allowing companies to bring these benefits to Australians.
5. Make Australia a home for Web3 entrepreneurs.
The world’s best talent is going where it’s welcome. If we want the next global fintech to be born in Australia, we need to create an environment where builders are supported, not shut out. That means tax clarity, startup incentives, and dedicated grants for blockchain R&D.
Other countries are already getting on with it – delivering clear, proactive regulation that supports innovation, protects consumers, and encourages investment. If Australia doesn’t move now, we risk falling even further behind. The next government must move beyond consultation and into legislation.
Crypto isn’t waiting – and neither should we.
International
About John O’Loghlen
John O'Loghlen is Regional Managing Director APAC & Country Director Australia. Prior to this, John was regional director for Australia at Ant Group, where he also led Alipay for Australia and New Zealand. John was director for Business development at Alibaba Group, after serving as Director at Gung Ho Ventures, a China-focused food and beverages concept platform. John also worked in Goldman Sachs from 2000-2005. John holds a B.A. from Harvard University, and an M Phil from Cambridge.