Tuesday, 28 May 2024

Aussies ‘Buy The Dip’ as regulation struggles to keep pace with crypto sector

5 min read

SINGAPORE  29 November 2022  Recent global market uncertainty and volatility has not deterred local crypto investors, with Australians’ interest and investment in crypto continuing to gain momentum, according to Australia’s longest-running and most robust crypto research, the 2022 Independent Reserve Cryptocurrency Index (IRCI), released today.

Conducted annually, and now in its fourth year, the IRCI is a national survey providing a benchmark for the awareness, trust and confidence that everyday Australians have in digital currencies.

Like many other markets around the globe, cryptocurrencies have had a difficult year, with the price of Bitcoin and other digital currencies dropping dramatically from the 2021 highs. This has resulted in overall lower crypto ownership rates, fewer profits and a decrease in short-term confidence in the sector. 

Despite this, the 2022 IRCI data shows pockets of growth and optimism. 

Whilst overall ownership rates decreased from 29% to 26%, those who are buying crypto are seizing the opportunity to ‘buy the dip’ and are investing more than ever before. In 2022, people investing $500 or more per month in crypto rose 10.3% to 17.3%. 

Australians over 35 also bucked the trend, with ownership among respondents aged 35-44 up from 38% in 2021 to 46% in 2022. Ownership among 45-54-year-olds grew from 25.3% to 27%, and for 55-64-year-olds ownership grew from 9.7% to 11.4%.

Off the back of a doubling of the proportion of women owning crypto last year, female ownership increased again in 2022, up from 20% to 21.4%. The increase considerably closes the crypto adoption gap between men and women.

Independent Reserve CEO, Adrian Przelozny, said: “Our 2022 survey results reflect the period of global market uncertainty we’re currently experiencing. 

“Crypto has a reputation for being volatile and we have seen this volatility increase recently as the industry market capitalisation has decreased globally. Despite this volatility, the 2022 IRCI data clearly demonstrates that Australians’ interest, and investment in crypto remains high and continues to gain momentum. 

“Our 2022 IRCI findings highlight the increasing need for a fit-for-purpose regulatory framework for digital assets that fosters trust and investment in Australia’s financial and payment systems. 

“In fact, 36.1% of Australians said a lack of regulation and consumer protection is the main reason they didn’t invest in crypto in the past 12 months. This has increased significantly, up from 24.8% last year, and reflects the fact that regulation is struggling to keep pace and adapt with the growth of the crypto sector.

“The Albanese Government has a unique opportunity to enable Australia to be a world-leading digital economy and society. The introduction of stronger regulation and policy change will drive investment, provide certainty to the sector and ultimately, increase consumer protection. The time for talk is over, the time for action is now,” he said.

Re-disseminated by The Asian Banker

 

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