Market pundits have criticised the absence of cryptocurrency in the government’s pre-election budget, warning that the country risks losing a competitive edge in a rapidly evolving world.
Coinstash co-founder Mena Theodorou said that despite recent policy announcements, failing to mention digital assets in the budget is a “disappointing” oversight.
Last week, the Labor government confirmed it is working with industry and regulators to provide effective settings for digital assets that balance “innovation with consumer protection” via the existing AFSL framework.
At the time, Crypto.com’s head of Australia, Vakul Talwar, stated that recent talks in Canberra revealed all political parties are engaging with stakeholders, signalling a “distinct change in attitude towards crypto”.
However, in a statement on Tuesday evening, Theodorou said the regulatory announcement is “not sufficient” to promote widespread adoption, or position Australia as a leader in the adoption of digital assets.
Turning to the budget, he called cryptocurrency’s absence a “disappointing” oversight, especially given the significant role that cryptocurrency, particularly bitcoin, has played in other developed countries like the US.
“This situation reflects a hesitance on the part of our government to fully recognise the significance of cryptocurrencies, which aren’t going anywhere,” he said.
“As digital assets continue to grow in popularity, it is crucial for the government to engage actively with this evolving sector and implement supportive measures that acknowledge its importance. By neglecting to address crypto, the government risks missing out on the potential economic benefits that this emerging asset class could bring to Australia.”
Like Theodorou, Robert Francis, managing director at eToro Australia, said “it is dismaying to see that crypto is once again completely absent in this year’s budget”.
Labelling the government’s proposed cryptocurrency regulations “a great step forward”, he said eToro would have liked to see that commitment reflected in the budget.
“Behind the US and Canada, Australia ranks third in crypto ATM installations across the globe, which is a clear indication not only of the wide adoption of crypto in this country, but the promising future Australia could bring to the crypto sector globally,” he said.
“Further regulation won’t have any significant impact on eToro operations in Australia, but we are very happy to see the industry more broadly will be held to a higher standard that benefits good actors and protects investors and would have liked to see that commitment reflected in the federal government’s broader fiscal policy.”
Much like his peers, Mark Hiriart, head of sales at Zerocap, stressed that regulations alone are not enough to drive increased cryptocurrency adoption.
“We need some financial backing, tax incentives or strategic investment into the sector to really allow it to thrive domestically,” Hiriart said on Tuesday.
“While it was fantastic to see more clarity from the Australian government and regulators in recent weeks, it would have been even better to see some mention of digital assets and crypto within this year’s federal budget in some capacity.”
As global competitors make strides in embracing blockchain technology and cryptocurrencies, Hiriart believes that Australia’s progress is “slower than average”.
A day after Labor’s budget reveal, it was announced that Crypto.com will be partnering with Trump Media & Technology Group – a company majority owned by President Donald Trump – to support and power a series of TMTG-branded ETFs comprising digital and non-digital assets.
“We are proud to partner with Trump Media and Yorkville America, and to support the launch of these new ETFs, including the first of its kind basket of tokens including CRO,” said Kris Marszalek, co-founder and CEO of Crypto.com.
“These ETFs give consumers more options from a brand with a loyal following. Once launched, these ETFs will be available on the Crypto.com app for our more than 140 million users around the world.”
The Trump government has been particularly favourable for cryptocurrency, having adopted a more structured and proactive regulatory approach to cryptocurrencies, aiming to position the United States as a global leader in digital assets.
