Crypto exchange Swyftx predicts between two to six million Australians could enter the market if regulated.
According to the CEO of a local crypto exchange, millions of potential crypto investors in Australia are waiting on the sidelines for clearer regulations.
Jason Titman, the CEO of Swyftx, told Cointelegraph that his company expects between two and six million Australians to enter the crypto market once “the dust has settled on regulation.”
A survey conducted by Swyftx revealed that nearly one-third of respondents would be more inclined to buy crypto if regulated, while 41% expressed a lack of trust in the market without regulations.
Among the 2,229 adults surveyed, 20% had never owned crypto, and 43% admitted they didn’t understand how crypto works.
“We have a wall of investors right now sitting on the sidelines waiting for the security of consumer protections,” Titman said.
He added that once national markets are regulated, there will be “more investment in the sector, more utility, more security, and more interest.”
The survey estimated that 3.9 million Australians own crypto, while another 1.3 million are considering entering the market next year.
However, crypto usage in Australia has slightly decreased despite Bitcoin reaching an all-time high of $73,750 in March 2024.
The percentage of people owning digital assets dropped from 23% to 20%, although usage among Gen Z saw an 11% increase.
Most investors reported making a profit over the past year, with approximately 82% claiming gains, and Swyftx estimates the average profit to be around $9,600.
Titman predicts that crypto adoption will remain “sideways” until regulations are implemented.
“The reality is that there are a finite number of investors who are willing to take on the risk of entering an unregulated market,” he said. Without regulation, he expects adoption to slow.
He also highlighted that evidence from Australia supports the notion that the global crypto economy will experience exponential growth once it’s regulated, saying, “We think a regulated industry is almost certainly how we hit one billion global crypto owners.”
While cryptocurrencies are legal in Australia and subject to property laws, profits from investments must be reported to tax authorities.
The government has promised to introduce regulations for exchanges and custody, but no definitive rules have been set yet.
