Australia’s crypto sector is growing in users and regulatory knowledge, but industry leaders say important problems remain unresolved.
Speaking at the XRP Australia 2026 event in Sydney, Coinbase APAC managing director John O’Loghlen pointed to what he called positive regulatory momentum and said government teams have significantly improved their expertise. He noted Treasury, which is drafting regulation, and the Australian Securities and Investments Commission (ASIC) have upskilled staff and built deeper digital-asset domain knowledge.
O’Loghlen highlighted rising institutional interest and wider access through products such as exchange-traded funds: Australia’s first spot Bitcoin ETF launched in June 2024 and an Ether ETF followed in October 2024. He also argued that Coinbase’s inclusion in the S&P 500 offers Australian institutions a passive, lower-risk way to gain exposure and learn about the industry.
Independent Reserve’s 2025 report cited further signs of consumer uptake: crypto adoption in Australia rose to 31% (from 28% in 2024), and 29% of survey respondents said they planned to invest in crypto within 12 months.
Self-managed super funds (SMSFs) are another area of expansion. OKX Australia CEO Kate Cooper said the exchange has seen more activity from sophisticated traders, SMSF trustees and high-net-worth individuals. Many SMSFs are reportedly being set up specifically to permit trustees to hold digital assets, because large super funds often do not offer that option. Preliminary OKX research indicates many investors are seeking digital assets as part of broader portfolio diversification, and SMSFs remain a primary route for doing so.
Despite these gains, executives warned that banking hurdles persist. Debanking of crypto businesses and customers remains a major concern. Cooper said the issue is ‘absolutely still a challenge’ and that she has not seen improvements, adding that OKX is engaging with governments to encourage clearer standards. O’Loghlen pressed for concrete solutions to debanking, stronger protections for blockchain-based payment innovation, and more support for Australian stablecoins. He also cautioned regulators to avoid unintentionally bringing non-custodial wallet developers and public blockchain infrastructure providers under licensing regimes meant for intermediaries.
The legal and regulatory landscape retains elements of uncertainty. Crypto lawyer Bill Morgan described the current stance as a ‘wait and see’ period while ASIC appeals a Federal Court decision that favored fintech firm Block Earner over whether it required a financial services licence for its crypto products. Morgan also suggested political cycles and short parliamentary terms can slow legislative progress: momentum that had developed under the previous Liberal-National coalition took time to resume after the change in government.
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