Australia Focuses on Crypto Regulation, No Plans for National Reserve

Australia has no immediate plans to launch a national cryptocurrency reserve, despite the U.S. announcing such a move earlier this month.

While President Trump revealed intentions to include popular cryptocurrencies like Bitcoin, Ethereum, and Solana in a strategic reserve, Australia’s government remains focused on regulating the crypto sector rather than adding digital assets to its financial reserves.

The Albanese Government, currently in power, has instead prioritized creating a strong regulatory framework for digital assets. A government spokesperson emphasized their commitment to building a system that supports blockchain innovation while ensuring digital asset platforms are properly regulated. This stance comes amid a period of political uncertainty, with a federal election required by May 17, potentially shifting the country’s crypto approach.

Industry insiders like Tom Matthews of Swyftx have pointed out the risks involved in establishing a crypto reserve, particularly the volatility and concentration risks posed by digital assets. Matthews suggests a sovereign wealth fund dedicated to long-term crypto investments might be a more viable approach. Meanwhile, Kraken’s Jonathon Miller stressed that crypto is already viewed as an investment-grade asset by funds and sovereign wealth entities, underscoring its growing legitimacy in global finance.

As the Australian crypto landscape evolves, regulators are also focusing on tightening oversight. AUSTRAC plans to ramp up its scrutiny of the sector in 2025, especially targeting crypto ATM operators, while ASIC’s recent guidelines for treating many digital assets as financial products will require crypto firms to secure licenses. Notably, Australia is becoming a leading hub for crypto ATMs, with over 1,450 machines now operational, a stark rise from just over 60 in 2022.

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