Swyftx, the Australian crypto exchange, published Monday a new survey that shows that around one million Australians will be buying cryptocurrencies for the first-time in the next 12 month.
In the new survey, 2,609 Australians aged over 18 were questioned. 548 of those surveyed were identified as current holders of crypto.
The research revealed that despite the current “crypto winter”, Australian crypto ownership has grown 4% year-on-year (YoY), reaching 21% this year. According to the survey, this number is expected to rise by one million more crypto owners in 2023.
This could lead to crypto ownership totaling more than five million.
The study found that at least 25% of Australians plan to purchase crypto in the next 12 months. However, it revealed that Gen Zers, Millenials and full-time workers are more likely to invest in 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 said that the adoption rate could slow in the next 12 month, but will recover 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 from investing in crypto, especially those who have not yet done so.
Ryan Parsons, Swyftx’s co-CEO, said that the report shows there is strong demand from Australians to use and buy crypto. Regulator issues are the reason for user hesitancy. 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.
Take Note of Local Regulators
As the Covid-19 pandemic erupted, crypto and other non-cash payments became more popular in Australia. According to government data in December 2021, 63% more Australians had transacted in crypto than the previous year. Australians are among the most enthusiastic crypto users, with 20% of them owning one, as opposed to 11.4% worldwide.
With that rapid digital revolution taking place, the country’s regulation is struggling to keep pace and adapt to the crypto industry. The crypto industry is not regulated at all. The government is working to balance the need to embrace new technologies with consumer protection.
This follows growing concern from government regulators like ASIC about the increase in scams using cryptocurrency and the effect of social media on this industry. Australian Prudential Regulation Authority, (APRA), released reports last month warning about the risk management and scale of crypto assets.
Last month, the Australian Treasury announced that it had a multi-step plan for establishing a crypto regulatory framework. It aims to be more thorough than existing ones anywhere else on the planet and to be better informed.
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.