Australia Snubs Crypto Reserve, Eyes Tighter Regulation
1min read The Australian government has announced that it has no plans to establish a strategic cryptocurrency reserve. This decision comes despite the recent announcement by US President Trump of a similar plan for the US. A spokesperson for Australian Treasurer Stephen Jones stated that the government will focus on regulating digital asset platforms and continue to collaborate with the industry to develop a suitable regulatory framework for digital assets.
Currently, Australia has no plans to establish a crypto reserve, although some US states are considering adding crypto assets to their balance sheets. Tom Matthews, Director of Corporate Affairs at the Australian cryptocurrency exchange Swyftx, believes that the idea of a crypto reserve is complex and risky, potentially leading to concentration risks in certain tokens. He predicts that a sovereign wealth fund primarily consisting of cryptocurrency assets may emerge in the future.
Meanwhile, Australia's regulatory agencies are planning to shift their focus to the crypto industry. The anti-money laundering regulator has stated that they will strengthen regulation of the crypto industry by 2025. This move is aimed at addressing the growing concerns surrounding the use of cryptocurrencies for illicit activities.
The Australian government's decision not to establish a strategic cryptocurrency reserve is a reflection of the country's cautious approach to the digital asset industry. While the government is committed to regulating the industry and working with stakeholders to develop a suitable regulatory framework, it is not yet ready to invest in cryptocurrencies on a large scale. This approach allows the government to monitor the industry's developments and assess the risks and benefits of investing in cryptocurrencies before making a final decision.
