Australia is on the brink of witnessing the rise of its next batch of crypto startups worth billions of dollars, known as “unicorns.” However, according to Coinbase’s APAC managing director John O’Loghlen, this can only happen once there is more regulatory clarity surrounding cryptocurrencies. O’Loghlen expressed his belief that policymakers and large institutional players in Canberra and on the high street have yet to fully comprehend the vast human capital potential in Australia.
Although O’Loghlen acknowledged some regulatory progress, such as the Treasury’s consultation paper in October 2023 and an informal meeting with policymakers at the Blockchain APAC Summit in March, he believes that Australia is still falling behind the significant increase in retail and institutional demand for crypto.
According to a survey conducted by Australian crypto exchange Independent Reserve in 2024, approximately 27.5% of all Australians, equivalent to 7.15 million people, currently own cryptocurrency. The survey also revealed that 35% of Australian crypto investors invest around $500 per month in digital assets.
O’Loghlen highlighted the growing demand for stablecoins, digital remittances, and other capital-efficient applications of crypto in the Australian fintech industry as fertile ground for the emergence of the next billion-dollar crypto company. He mentioned companies like Canva, Xero, Atlassian, and Afterpay as examples of successful multibillion-dollar valuation companies in Australia.
O’Loghlen also observed a significant increase in demand for crypto products from two specific sectors on the retail side. The first sector involves self-managed retirement funds diversifying into crypto, which O’Loghlen described as substantial despite being relatively small compared to the overall portfolio size. The second sector comprises “HENRYs,” an acronym representing “High Earners Not Rich Yet.” These are working professionals with good earning potential, minimal debt, and a desire to educate themselves about crypto.
Looking ahead, O’Loghlen revealed that Coinbase plans to expand its Stand with Crypto campaign to Australia later this year. The company intends to bring in senior leadership members to host various events aimed at helping regulators and policymakers understand the potential benefits of cryptocurrency in the country. O’Loghlen emphasized the importance of government representatives and policymakers in Canberra recognizing the real use cases of crypto for entrepreneurs and founders who are saving money and deriving utility from it.
O’Loghlen’s comments align with those of Kraken Australia’s MD Johnathon Miller, who believes that the current market conditions in Australia mark a turning point for crypto. According to Miller, it is not the market but rather the decentralized finance (DeFi) sector that needs to be rectified.