Regulation could see 4 in 5 businesses let customers pay with crypto

• A majority of Australian business leaders said they would let customers pay with crypto if digital assets were regulated.
• A recent survey found 77% of survey participants expect crypto to be a mainstream part of the financial sector in five years. 
• The government is expected to release a consultation paper on regulation before the federal election in May. 
• Visit Business Insider Australia’s homepage for more stories.

Four in five Australian business leaders said they would be more likely to let customers pay with crypto if digital assets were regulated, as the Australian government gears up to deliver on its regulatory system by mid-2022. 

It comes following updates last week from Senator Andrew Bragg — the Liberal leader driving Australia’s digital technology transformation — that the government had seen strong industry consensus on tough regulatory measures it plans to roll out by the end of this year.

Industry insiders have told Business Insider Australia previously that the government’s collaborative process had enabled an array of voices to be heard in developing the regulatory framework, with less friction than has been seen in other areas like buy now, pay later (BNPL).

It has been around a year since the Senate Select Committee on Financial Technology and Regulatory Technology launched, with a suite of detailed recommendations handed down and accepted by the government at the end of 2021.

The survey, conducted by YouGov and commissioned by Australian cryptocurrency exchange Swyftx, found 77% of survey participants expect crypto to be a mainstream part of the financial sector in five years. 

The results also suggest regulatory clarity has the potential to rapidly accelerate business adoption of cryptocurrencies for customer transactions. 

It showed 81% think the introduction of a proper regulatory regime will significantly increase the likelihood of their business enabling customers to pay with crypto. 

Furthermore, 80% of senior financial decision makers believe businesses should support the country in becoming a “global leader in digital assets and blockchain technologies”. 

The YouGov data was based on findings from a national survey of 259 Australian-based chief executives, managing directors, business owners and other senior financial decision makers at businesses of all sizes between October and November of 2021.

Treasury is currently working on the design of a crypto market licence and local custody requirements. It is expected to release a consultation paper before the federal election in May. 

A Swyftx spokesperson said the government’s position shows it is navigating the costs and benefits to growth in designing regulation. 

“Our starting position is that Australia both needs, and would benefit from, a robust cryptocurrency regulatory regime,” the spokesperson told Business Insider Australia.

“But it’s extremely important that it fosters innovation rather than stifles it.”

The survey also comes amid a push to grow the sector along with Australia’s technology industry more broadly, and increased scrutiny from the Australian Federal Police and the ACCC around exploitation. 

A report released by EY in November found the cryptocurrency sector contributed $2.1 billion to the Australian economy and employs around 11,600 people.

The report found the industry has already been responsible for adding about 11,600 jobs to the economy, which is expected to swell to 37,800 by 2025, and then 205,700 at the end of the decade.

Tommy Honan, head of corporate partnerships at Swyftx, said the exchange was surprised at how “bullish Australian financial leaders were on the adoption of crypto”. 

“This is probably ahead of most international analyst expectations,” Honan said, adding it spoke to Australia’s high adoption rate, which has seen 25% of Australians interact with crypto in some way.

“An increasing number of business leaders understand the potentially disruptive impact of blockchain technology and Web 3.0 on their markets. They’re just not necessarily ready to take the regulatory risk they see at the moment,” he said. 

“We think a significant number of businesses are playing a waiting game now. They want greater regulatory certainty before they integrate cryptocurrency into their payment systems and investments.” 

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