Australian Cryptocurrency Update

/

Research: crypto for Christmas

An independently-conducted survey for crypto giant Crypto.com found that just over a quarter of Australians plan to buy cryptocurrency-focused gifts for Christmas. The research was conducted on over 2,000 Australians aged 18-59 who have engaged with cryptocurrency in the past year.

Key findings of the research include:

  • 26 per cent of Australians are planning on buying crypto-centric gifts this year

  • Two-thirds are likely to shop online for Christmas presents

  • 8 per cent aim to use cryptocurrency or crypto-enabled cards to pay for the gifts

  • Most survey respondents were under age 44, with half saying they would buy actual crypto coins like Bitcoin or Ethereum as gifts

  • Gifts included crypto-themed clothing (socks, hoodies) with 43 per cent of those buying crypto-centric gifts seeking out these items

  • 42 per cent of respondents were considering coin vouchers, 35 per cent crypto books, while 30 per cent were going to look at non-fungible tokens (NFTs) such as art, top shot or Axie Infinity gaming tokens

  • Almost 8 per cent said they will use crypto to pay for gifts

  • Nearly a third said they would use buy now pay later services

  • 13 per cent of respondents said they have used cryptocurrency payments in the past 12 months

  • 67 per cent said they would buy gifts online

  • Many respondents are happy to use cryptocurrency as part of their everyday life, with two-thirds agreeing that crypto has other uses than just investments

  • Uses include local or international payments (65 per cent), a store of value (41 per cent), earn staking rewards (a form of interest paid on crypto holdings) (34 per cent)

  • 31 per cent said cryptocurrencies were good for buying digital collectables (NFTs)

  • 47 per cent rated the importance of having a debit or credit card to spend crypto at any given location at 7 or more out of 10

  • 21 per cent said they were looking to buy NFTs, mostly in the 35-44 age bracket, with those who currently own NFTs in the 40-44 age bracket

  • Eight of 10 respondents said security was important while 78 per cent said low fees were important

  • 64 per cent said market volatility was a key issue

  • 47 per cent said online scams were of concern

  • 41 per cent said the lack of acceptance of cryptocurrency by traditional finance sources was a concern

First Aussie bitcoin mine run entirely on renewables

Australia’s largest bitcoin mine run entirely off renewable energy is being set up in Byron Bay. The deal was made between Cryptocurrency Australia, Mawson Infrastructure Group and renewable energy group Quinbrook Infrastructure Partners. Bitcoin mining is a massive contributor to carbon emissions since it takes so much power to run the mine warehouses.

AUSTRAC warns banks against debanking crypto customers

A Senate inquiry looking at Australia as a financial services hub has heard from small crypto business owners who provided information regarding their treatment by banks and AUSTRAC. The industry-wide practice of debanking is being examined after a huge amount of crypto-related businesses were cut off from the banking system due to fears of money laundering consequences.

AUSTRAC, Australia’s anti-money laundering regulator, has issued a stern warning to banks regarding debanking customers who deal in cryptocurrencies and remittance services. AUSTRAC expects banks to have systems in place to differentiate between good and bad operators.

Debanking is where a bank stops its relationship with a customer, which has been occurring regularly amongst concerns that cryptocurrency operators had been exiled from the banking system for running cryptocurrency businesses.

AUSTRAC warns that debanking legitimate account holders can have a ‘devastating impact’ on individuals and small businesses. An AUSTRAC statement said: “…Austrac continues to discourage the indiscriminate and widespread closure of accounts across entire financial services sectors.”

Banks have defended the practice of closing accounts without warning or an appeals process, saying they are adhering to anti-money laundering and counter-terrorism financing laws. AUSTRAC, however, was not impressed, saying it has higher expectations of the banks, saying they would not deem a customer high risk just because they work in a certain sector.