Coinbase, using its voice as one of the largest centralized cryptocurrency exchanges, has urged the Australian government to take bold steps regarding the crypto regulations. There has been much talk of late about how Australia can become a world leader in the digital assets space, and this has been a talking point.
With federal elections approaching May 3, 2025, it is a pivotal point for the country’s cryptocurrency future. We have recently seen the impact of a major election on cryptocurrency, with the U.S. election seeing President Donald Trump lean heavily in favor of crypto-related policies.
A Growing Crypto Landscape in Australia
One of the major reasons that Coinbase is advocating for reform and regulation in the cryptocurrency sector is because of the growth it has experienced. It is estimated that anywhere between 25 and 31 percent of all Australians either currently own cryptocurrency or have owned it in the past.
That is one of the highest adoption rates in the world, and institutions are not only keeping a close eye on things but following with that adoption. AMP became the first superannuation fund to invest in Bitcoin, entering the mix in 2024.
Despite growth, many feel that regulation has hit a standstill. Early leadership in Australia, going all the way back to 2014, has been there but Australia’s cryptocurrency policy is still not quite as developed as it could or should be.
Many nations feel that cryptocurrency is the wave of the future. Both Pakistan and Indian have already made substantial moves to embrace not only cryptocurrencies, but the entire digital asset space. In the United States, President Donald Trump has made claims that he hopes for the country to become “the crypto capital of the world.” It is time now for Australia to act to avoid being left behind.
Changes Recommended by Coinbase
Coinbase had several recommendations stemming from a lack of legislation and regulation surrounding digital assets. The exchange asserts that those issues are harming investors, consumers, and the founders of these digital assets. As a result, innovation is being pushed to countries that have more friendly cryptocurrency regulatory environments like Dubai or Singapore.
Coinbase outlined a number of steps that the Australian Government should take to execute that reform. Coinbase APAC Managing Director John O’Loghlen has described the current environment for cryptocurrency policy as “unfit to support long-term growth” and “vague.”
It was also noted by the exchange that wealthy Australians are still holding limited crypto. Even with recent proposals, Coinbase suggests that much stronger legislation is required to keep Australia near the forefront of the digital assets world.
Steps Outlined by Coinbase
According to a blog post on its website, Coinbase has five actionable steps that the Australian government can take. With proper action, Coinbase believes that not only will investors and consumers be better protected, but Australia will take a leap toward prominence in the digital assets space.
Take Action on Debanking
Coinbase was vocal about the debanking problem facing Australia. The belief is that both individuals and businesses are being pushed out of the financial services industry for wanting to invest in or operate in the digital assets space. Coinbase also believes that individuals and businesses are being restricted from using their own money for the purchase of digital assets.
Coinbase stated that this kind of approach makes average Australians “feel like criminals.” More importantly, the blog says, it is costing Australia investment, innovation, and a general financial freedom through investment.
On the other hand, institutional investors – often banks – are able to trade crypto through their own institutional desks. This illustrates that there is both opportunity and legitimacy in the digital asset space. That said, business and retail customers are facing penalty for the same moves.
The Launch of a Crypto Taskforce
The United States has already eliminated its major crypto-based task force amidst shifting crypto rules. Coinbase proposed that, in order for Australia to become a crypto hub, it needs to institute a taskforce focused on the crypto industry within the first 100 days.
If the goal is to make Australia a place of innovation for blockchain, Web3, and crypto technology, there needs to be a group that is dedicated the design and delivery of cryptocurrency legislation.
Coinbase believes that there should be not only industry representation, but consumer representation as well. It also feels that this taskforce should have a clear mandate in order to bring legislation before parliament before the year’s end.
Stablecoin Adoption
Stablecoins – cryptocurrency that has major financial backing and isn’t a fly-by-night meme coin – are becoming more important for the cryptocurrency market. Stablecoins possess the ability to bring a modern flare to payment systems, something that can have far-reaching impacts.
By using Stablecoins, payment systems can become cheaper, faster, and move far more quickly in the direction of efficiency. Coinbase pushes for legislation that will allow companies to utilize those benefits through a number of avenues, benefiting Australians everywhere.
An Aim Toward Web3 Entrepreneurs
One of the major arguments made by Coinbase is that a lack of regulations is not only costing investors real dollars, but it is costing Australia the talent needed to become a force in the cryptocurrency market. Where innovation goes, talent follows, and challenging regulatory landscapes can make that a lot more difficult.
In Australia, a structure needs to be created from a government level to support cryptocurrency builders rather than shut them out. With startup incentives, dedicated grants for blockchain development, and tax clarity, Australia can foster an environment that brings talent into the country.
Some countries have recognized this already, offering proactive, clear regulation that is meant to not only protect consumers, but encourage investment and actually supports innovation. The belief is that, if Australia doesn’t act now, it risks falling behind in global development.
Crypto-backed Financial Services
One of the biggest issues facing Australian investors is that they aren’t able to utilize these assets in the same way as traditional assets. There are hoops to jump through in order to even access financial products, let alone to trade, buy, invest, or borrow them.
By implementing a new licensing regime, a clear direction could be provided to both consumers and crypto providers. There is tremendous potential available to investors in the crypto space, and only through proper regulation can Australia hope to achieve a place among the major cryptocurrency players on a global scale.
Final Thoughts
The landscape for cryptocurrency remains uncertain. The coming election could be a beacon for change depending on who is elected and what policies they decide to bring forward. As Australia’s cryptocurrency market continues to grow, the space will require further regulation at some point.
Many of the ideas that Coinbase has presented would promote that kind of regulation, fostering innovation and security in a space that is rife with the former and lacking in the latter. It is a pivotal point in the digital assets space, particularly in Australia.
