Australian government refuses to create crypto reserve
Australia rejects national crypto reserve despite global trend.
Australia’s government is not considering a national crypto reserve despite growing global interest.
While U.S. President Donald Trump recently directed his working group to include assets such as XRP, Solana, Cardano, Bitcoin, and Ether in a strategic crypto reserve, an Australian spokesperson for Assistant Treasurer and Financial Services Minister Stephen Jones confirmed that the government is instead prioritizing the development of a robust digital asset regulatory framework, reports Cointelegraph.
Commitment to a Fit-for-Purpose Framework
The spokesperson emphasized that Australia is focused on establishing a fit-for-purpose digital asset regulatory regime, stating, “The Australian 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.”
This approach is aimed at ensuring that the country can harness the economic potential of digital assets while maintaining strict regulatory oversight, rather than creating a state-held crypto reserve.
Industry Concerns and Alternative Approaches
Industry experts have expressed mixed views on the idea of a crypto reserve in Australia. Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, argued that the high volatility of cryptocurrencies makes them less suitable for a national reserve.
He suggested that a long-only sovereign wealth fund holding crypto might be a more viable option. Similarly, Kraken’s managing director for Australia, Jonathon Miller, noted that digital assets have already proven themselves as investment-grade, with significant institutional adoption by superannuation funds, ETFs, and sovereign wealth funds.
Growing Regulatory Momentum and Market Developments
The regulatory landscape in Australia is rapidly evolving. The Australian Transaction Reports and Analysis Center has signaled plans to increase its focus on the crypto sector in 2025, and the Australian Securities and Investment Commission recently released a consultation paper on crypto guidance.
Additionally, Australia’s emergence as a crypto ATM hub—with over 1,453 ATMs now in operation compared to just 67 in August 2022—underscores the country’s proactive stance in embracing digital asset innovation while ensuring secure financial practices.
Recently we wrote, that President Donald Trump has announced an expansion of the U.S. crypto strategic reserve, directing the President’s Working Group on Digital Assets to include Bitcoin, Ethereum, Solana, XRP, and Cardano.
