Coinbase Outlines Path for Australia to Become a Global Crypto Powerhouse
While Australia's WEB3 remains "frustratingly vague and underdeveloped"
Australia stands at a crossroads in the rapidly evolving world of digital assets. While Australians have shown significant enthusiasm for cryptocurrencies, with adoption rates estimated between 25% and 31%, the nation risks falling behind on the global stage due to regulatory uncertainty. In a recent blog post, leading global cryptocurrency exchange Coinbase detailed a strategic roadmap it believes Australia should follow to harness the potential of Web3 and establish itself as a leader in the crypto economy.
Australia’s policy environment for crypto remains frustratingly vague and underdeveloped.
John O'Loghlen, Coinbase’s CEO and Regional Managing Director APAC & Country Director Australia, argues that the current “frustratingly vague and underdeveloped” policy environment in Australia is hindering innovation, pushing talent and investment overseas to more crypto-friendly hubs like Singapore and Dubai, and failing to provide adequate protection for consumers and investors. The company stresses that the upcoming federal election presents a critical opportunity for the next government to take decisive action.
Drawing on its global experience, Coinbase's blog lays out five key recommendations for Australian policy makers:
Establish a Dedicated Crypto Taskforce: Coinbase urges the incoming government to launch a joint industry-government taskforce within its first 100 days. This body, including industry and consumer representatives, should be mandated to fast-track the development of clear, fit-for-purpose crypto legislation, with the goal of presenting a bill to Parliament before the end of the year.
Tackle the Debanking Crisis: A significant barrier highlighted by Coinbase is the growing problem of "debanking," where individuals and legitimate crypto businesses are denied essential banking services, often without justification. This practice, Coinbase notes, treats everyday Australians like criminals and stifles the sector's growth, even while some of the same banks engage in institutional crypto trading. Coinbase calls for the government to prioritise implementing solutions, building on previous recommendations from the Council of Financial Regulators.
Unlock Crypto-Backed Financial Services: Australians should have the ability to utilise their digital assets just like traditional ones – for borrowing, investing, and accessing other financial products. Coinbase advocates for a clear licensing framework that provides certainty for both service providers and consumers, unlocking the utility of crypto assets.
Facilitate Stablecoin Adoption: Recognising the potential of stablecoins to revolutionise payments by making them faster, cheaper, and more efficient, Coinbase recommends prioritising legislation that provides a clear pathway for their issuance and adoption in Australia.
Foster a Welcoming Environment for Web3 Innovators: To attract and retain the talent needed to build the next generation of the internet, Coinbase suggests Australia must actively create a supportive ecosystem. This includes providing clarity on tax treatment for digital assets, offering incentives for Web3 startups, and establishing dedicated grants for blockchain research and development.
Coinbase's message is clear: Australia possesses the talent and public interest to be a significant player in the global crypto economy. However, realising this potential requires urgent, ambitious, and clear legislative action from the government. By taking these steps, Coinbase believes Australia can move beyond mere consultation and position itself as a true leader in digital asset innovation, echoing its history of impactful financial reforms.