Australia’s Crypto Industry: From Policy Talk to Real Growth
After years of anticipation, Australia’s digital asset industry is finally moving beyond consultation and into a phase of tangible development. According to Steve Vallas, CEO of Blockchain APAC, the industry is “back in the gym,” focusing on operational details and execution. This shift signals a maturing market, poised for significant growth as regulatory frameworks solidify.
New Regulations: A Foundation for Innovation
The Australian Securities and Investments Commission (ASIC) updated its approach to digital assets in October, clarifying how existing financial laws apply while introducing temporary measures to ease compliance. This was followed by the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025 into Parliament in November. This bill aims to establish clear, enforceable rules for businesses handling digital assets on behalf of consumers, bringing them in line with the standards of the broader financial system.
This regulatory clarity is crucial. For too long, uncertainty has hampered investment and innovation. Now, with a defined framework taking shape, industry experts are emphasizing the need for collaboration, rapid implementation, and clear communication.
Did you know? Australia isn’t alone in this regulatory push. Across Asia and Latin America, similar frameworks are emerging, making crypto Exchange Traded Products (ETPs) the global standard for regulated access to digital assets.
The Rise of Crypto ETPs: A New Gateway for Investors
Global adoption of cryptocurrency is accelerating, and a key driver is the increasing popularity of crypto ETPs. 21Shares, the world’s largest crypto ETP provider, predicts these products will surpass US$400 billion in assets under management (AUM) by 2026. This represents a significant increase from the US$250 billion milestone briefly reached last year.
The growth is fueled by both retail and institutional investors. Currently, non-institutional accounts hold 73% of Bitcoin ETP shares, but institutional participation is steadily increasing. Bitcoin ETPs already hold over US$140 billion, representing 7% of the total Bitcoin supply. This demonstrates a shift towards “patient capital” – long-term investment in the asset class.
Pro Tip: Consider diversifying your portfolio with crypto ETPs for regulated exposure to digital assets. Research different providers and understand the associated fees and risks.
Bitcoin’s Maturation: Beyond Boom and Bust
The narrative around Bitcoin is also evolving. 21Shares argues that Bitcoin’s traditional four-year cycle is breaking down. With new Bitcoin issuance now below 1%, even lower than gold’s supply growth rate, the asset is moving away from dramatic boom-and-bust cycles and towards a more stable, mature profile.
This shift is driven by the “debasement trade” – fears of inflation and currency devaluation. As fiscal deficits widen and inflation remains above target, Bitcoin is increasingly viewed as a hedge against traditional financial instability. JP Morgan predicts Bitcoin could reach US$170,000 in 2026, reflecting this growing confidence.
Stablecoins: The Connective Tissue of Finance
Alongside Bitcoin and ETPs, stablecoins are playing an increasingly important role in the digital asset ecosystem. 21Shares forecasts the stablecoin supply will reach US$1 trillion in 2026 – a 3.3x increase from current levels. US Treasury Secretary Scott Bessent projects dollar stablecoins alone could top $2T by 2028.
Traditional payment giants are rapidly embracing stablecoins, recognizing their potential to streamline transactions and reduce costs. Fireblocks reports that 90% of institutions are now taking concrete steps toward stablecoin adoption. This highlights the growing recognition of stablecoins as the “connective tissue” between traditional finance (TradFi) and decentralized finance (DeFi).
Challenges and Opportunities Ahead
While the outlook is positive, challenges remain. Industry practitioners must work together to translate legislative intent into workable, resilient systems. Maintaining momentum is crucial to avoid “blind spots” that could hinder progress. Clear communication and a proactive approach to risk management will be essential for navigating the evolving regulatory landscape.
Frequently Asked Questions (FAQ)
- What are crypto ETPs? Crypto ETPs are investment products that track the price of one or more cryptocurrencies, similar to traditional ETFs.
- What is the Corporations Amendment (Digital Assets Framework) Bill 2025? This bill establishes clear rules for businesses handling digital assets in Australia, aiming to protect consumers and promote innovation.
- Is Bitcoin a stable investment? While Bitcoin has historically been volatile, its increasing adoption and decreasing issuance rate suggest it is becoming a more stable asset over time.
- What are stablecoins used for? Stablecoins are used to facilitate transactions, reduce volatility, and bridge the gap between traditional and decentralized finance.
Reader Question: “How will these regulations impact smaller crypto businesses in Australia?” The regulations will likely require smaller businesses to invest in compliance infrastructure, but they also create a more level playing field and attract larger institutional investors, potentially benefiting the entire ecosystem.
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