Australia Does Not Plan to Establish Crypto Reserve
Australia’s government is not currently considering the creation of a strategic crypto reserve, despite U.S. President Donald Trump announcing a similar initiative in the United States just days earlier.
On March 2, Trump announced that the President’s Working Group on Digital Assets had been instructed to include XRP, Solana, Cardano, Bitcoin, and Ethereum in the U.S. crypto reserve.
Several U.S. states are also exploring the possibility of adding cryptocurrency to their balance sheets.
However, the current Australian government has no plans to follow suit.
A spokesperson for Australian Assistant Treasurer and Financial Services Minister Stephen Jones told Cointelegraph that the government remains focused on regulating digital asset platforms.
“The Albanese Government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with industry,” the spokesperson said.
“The Albanese Government knows that blockchain and digital assets present big opportunities for our economy, our financial sector and innovation.”
A change in government could be approaching, however. A federal election must be held by May 17, and the latest YouGov poll shows the center-right Coalition leading the center-left Labor government 51% to 49%.
A spokesperson for the Coalition did not respond to a request for comment.
In an interview with Cointelegraph, Tom Matthews, head of corporate affairs at Swyftx, noted that while a crypto reserve is an appealing concept, it also presents challenges, including potential concentration risks if mismanaged.
“If one of the main goals of your country’s strategic reserve is to hedge against crises, the price volatility of crypto is a problem. It is just difficult to see where the political traction is going to come from,” he said.
Matthews believes a more likely scenario would be the creation of a long-only sovereign wealth fund that holds crypto.
Kraken’s managing director for Australia, Jonathon Miller, told Cointelegraph that cryptocurrency has already cemented itself as an investment-grade asset, with ETFs, superannuation funds, and sovereign wealth funds already holding crypto investments.
“If it’s suitable for them, it’s certainly worth consideration for long-term asset allocators like the Future Fund and even Treasury,” he said.
Meanwhile, Australian regulators have signaled a shift in their approach to crypto oversight.
In December 2024, Australian Transaction Reports and Analysis Center (AUSTRAC) CEO Brendan Thomas announced that the Anti-Money Laundering regulator would increase its focus on the cryptocurrency industry in 2025, particularly targeting crypto ATM providers suspected of non-compliance with AML laws.
The Australian Securities and Investments Commission (ASIC) also issued a consultation paper in December, proposing new guidelines that classify many digital assets as financial products, requiring firms dealing in crypto to obtain proper licensing.
Australia has also gained prominence as a hub for Bitcoin and crypto ATMs. Data from Coin ATM Radar shows the country now has the third-largest number of crypto ATMs globally, with over 1,453 machines, a significant increase from just 67 in August 2022.
Sources:
https://cointelegraph.com/news/australia-government-no-plans-crypto-reserve
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