Unrealized Potential: Australia’s Crypto Unicorns Await

Australia has the potential to produce its own billion-dollar cryptocurrency startups, known as “unicorns”, but this growth will only happen once there is more clarity in crypto regulations, according to the APAC managing director of Coinbase, John O’Loghlen. O’Loghlen emphasized the need for legislative clarity around digital assets to attract proper funding and provide certainty for venture capitalists and other investors. While there have been some regulatory advancements, including consultations and informal meetings with policymakers, O’Loghlen believes the regulatory progress lags behind the increasing demand for cryptocurrencies from both retail and institutional investors.

According to a survey conducted by the Australian crypto exchange Independent Reserve in 2024, 27.5% of Australians, equivalent to 7.15 million people, now own cryptocurrencies. The survey also highlighted that 35% of Australian crypto investors invest approximately $500 per month into digital assets. O’Loghlen sees great potential for the next billion-dollar crypto company to emerge in Australia, particularly in the areas of stablecoins, digital remittances, and other applications within the fintech industry.

O’Loghlen also identified two key sectors driving the demand for crypto products in Australia. The first is the growing interest among self-managed retirement funds to invest in cryptocurrencies, which although currently small relative to the size of their portfolios, has the potential to make a significant impact due to the size of their assets under management. The second sector of interest is what O’Loghlen referred to as “HENRYs” (High Earners Not Rich Yet) – working professionals with good earning potential who are taking the time to educate themselves about cryptocurrency and its potential.

Coinbase plans to expand its Stand with Crypto campaign to Australia later this year, aiming to host various events with senior leadership to help regulators and policymakers better understand the benefits of cryptocurrency in the country. O’Loghlen believes it is crucial for government representatives to see the real use cases and utility that entrepreneurs and founders are deriving from cryptocurrencies.

O’Loghlen’s views align with those of Kraken Australia’s MD, Johnathon Miller, who also sees the current market conditions in Australia as an “inflection point” for cryptocurrency. Both industry leaders believe that with the right regulatory environment, Australia has the potential to foster the growth of successful crypto startups and become a major player in the global crypto market.