Australian Crypto Execs Upbeat on Progress Despite Issues

Australian crypto executives expressed optimism about the country's digital asset sector at the XRP Australia 2026 event in Sydney on Friday, citing rising adoption rates and expanding institutional access, even as debanking barriers and regulatory ambiguity continue to weigh on the industry.

Institutional Access Grows Through ETFs and the S&P 500

Institutional participation in Australian crypto markets is accelerating through new financial products, according to Coinbase's APAC managing director John O'Loghlen. Speaking on the sidelines of the Sydney conference, O'Loghlen highlighted that Australia introduced its first exchange-traded fund holding Bitcoin directly in June 2024, followed by an ETF tracking Ether in October 2024. These vehicles have opened a regulated pathway for institutions seeking digital asset exposure.

O'Loghlen also pointed to Coinbase Global's inclusion in the Standard & Poor's 500 index as another channel through which Australian institutions can gain indirect exposure to the crypto sector, enabling them to learn "about the industry in a very passive way," he told reporters.

What Is Driving Crypto Adoption in Australia?

Crypto adoption in Australia is being driven by a combination of retail interest, SMSF growth, and sophisticated traders entering the market. A 2025 report from crypto exchange Independent Reserve found that adoption among Australians reached 31%, up from 28% in 2024. An additional 29% of respondents said they planned to invest within the next 12 months, signaling sustained momentum heading into 2026.

OKX Australia CEO Kate Cooper noted that a significant source of growth for the exchange has come from sophisticated traders, self-managed super fund trustees, and high-net-worth individuals. She said an increasing number of new SMSFs are being established specifically so trustees can invest in digital assets, "because they currently can't invest via the big super funds," Cooper told reporters.

Self-managed super funds are retirement vehicles set up and managed by individuals rather than conventional funds administered by large institutions on behalf of members. In a forthcoming OKX report examining SMSFs, Cooper said many respondents expressed interest in digital assets as a strategy to diversify their retirement holdings.

Debanking and Regulatory Hurdles Persist

Despite the positive trends, Australian crypto businesses still face significant obstacles. Last September, industry executives including Cooper flagged that users in Australia continue to encounter banking barriers when engaging with exchanges and other digital asset firms.

"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."

Regulatory settings must support innovation rather than inadvertently constrain it.

— John O'Loghlen, Coinbase APAC Managing Director

Calls for Clearer Regulation

O'Loghlen called for solutions to debanking, stronger protections for blockchain payments innovation, and greater support for Australian stablecoins. He urged that as the Regulation of Payment Service Providers reforms are developed, policymakers must ensure that non-custodial wallet developers and public blockchain infrastructure providers are not unintentionally captured within licensing regimes designed for intermediaries.

Meanwhile, Australian crypto lawyer Bill Morgan observed that the country's legal and regulatory landscape appears to be in "wait and see" mode following a court case between the Australian Securities and Investments Commission (ASIC) and fintech firm Block Earner. ASIC is currently appealing a Federal Court decision that sided with Block Earner on whether it was required to hold a financial services license for its crypto-related products. Morgan also pointed to a recent change in government as a factor that could be slowing the pace of legislative progress.