Australia’s Government Declines Strategic Crypto Reserve Amid Global Moves
The Australian government has announced that it has no plans to establish a strategic cryptocurrency reserve, diverging from recent developments in the United States. This decision comes as U.S. President Donald Trump revealed on March 2 that his administration would stockpile major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA), as part of a newly formed crypto strategic reserve.
Focus on Regulation Instead of Reserves
A spokesperson for Australian Assistant Treasurer and Financial Services Minister Stephen Jones stated that the Albanese government is prioritizing the regulation of digital asset platforms rather than creating a national crypto reserve.
“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 government acknowledges the potential of blockchain and digital assets for economic growth and innovation but remains focused on crafting robust regulatory measures.
Industry Perspectives on Crypto Reserves
While some industry experts see potential benefits in a strategic crypto reserve, others highlight significant risks. Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, noted that such reserves could pose concentration risks due to the volatility of cryptocurrencies. “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,” he explained.
Kraken’s managing director for Australia, Jonathon Miller, emphasized that cryptocurrencies have already established themselves as investment-grade assets, with institutions such as superannuation funds and sovereign wealth funds investing in them. He suggested that long-term asset allocators like Australia’s Future Fund could consider crypto investments.
Regulatory Shifts and Upcoming Elections
Australia’s regulatory landscape for cryptocurrencies is evolving. The Australian Transaction Reports and Analysis Center (AUSTRAC) announced plans to focus on the cryptocurrency industry in 2025, targeting compliance with anti-money laundering laws. Additionally, the Australian Securities and Investment Commission (ASIC) has proposed guidance categorizing many digital assets as financial products requiring licensing.
Meanwhile, political dynamics could influence future decisions. With a federal election due by May 17, polls show the center-right coalition slightly ahead of the ruling center-left Labor government. A shift in leadership might bring new perspectives on cryptocurrency policy.
Australia’s Growing Crypto ATM Presence
Despite its cautious stance on reserves, Australia has emerged as a global hub for cryptocurrency ATMs. Data from Coin ATM Radar reveals that the country now hosts over 1,453 ATMs, ranking third worldwide—a significant increase from just 67 ATMs in August 2022.
As global interest in cryptocurrency grows, Australia’s focus remains firmly on regulation rather than strategic stockpiling, setting it apart from recent moves by the United States.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
