Australian Crypto Executives Signal Crypto Growth Despite Challenges

Self-managed super fund investors eye crypto

OKX Australia CEO Kate Cooper noted that a significant area of growth for the exchange has come from sophisticated traders, self-managed super fund (SMSF) trustees and high-net-worth individuals.

At the same time, she said across the industry there are a growing number of new self-managed super funds being set up specifically so trustees can invest in digital assets, “because they currently cant invest via the big super funds.”

SMSFs are retirement funds set up and managed by individuals, rather than conventional funds managed by large institutions on behalf of users.

In a yet-to-be-released OKX report on SMSFs, Cooper said many respondents were interested in digital assets to diversify their holdings.

“Thats the feedback that we got through the research: a significant number of people wanting a diversified portfolio, wanting not just crypto, but digital assets more broadly, to be held as part of their portfolio. And SMSF is one of the main ways to do that.”

Lingering issues remain in Australias crypto scene

Last September industry executives, including Cooper, told Cointelegraph that users in Australia still face banking barriers when engaging with exchanges and other crypto businesses.

“It‘s absolutely still a challenge in the industry,” Cooper said. “I don’t think there‘s been any improvements. And we’re working hard with governments to encourage them to set some standards around it.”

OLoghlen also called for solutions to debanking, stronger protections for blockchain payments innovation and greater support for Australian stablecoins.

“Regulatory settings must support innovation rather than inadvertently constrain it,” he said.

“As the Regulation of Payment Service Providers reforms are developed, it will be important to ensure that non-custodial wallet developers and public blockchain infrastructure providers are not unintentionally captured within licensing regimes designed for intermediaries,” OLoghlen added.

Australian legal and regulatory landscape in limbo

Meanwhile, Australian crypto lawyer Bill Morgan said the Australian legal and regulatory crypto landscape appears to be in “wait and see” mode at the moment, following the ongoing court case between the Australian Securities and Investments Commission (ASIC) and fintech firm Block Earner.

ASIC is appealing a Federal Court decision siding with Block Earner about whether it was required to hold a financial services license for its crypto-related products.

He also pointed to a change in government that could be slowing legislation down.

“I think to some extent its a function of having three-year terms. There was some momentum under the former Liberal National Party coalition government, but then, when Labor won its first term four years ago, it took a while for it to get going again.”