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Highlights
- Bitcoin’s popularity status in the country was exposed in a survey of retail investors by the ASIC regulator
- Over 1,000 people participated, and it was found that cryptos ranked just below listed stocks in terms of popularity
- Bitcoin trading is not illegal in Australia, but it is only considered a speculative asset, not legal money
Australia is an advanced economy and has a fully developed financial landscape comprising banking entities, stock exchanges and other participants. Australians can pick between fixed income investments like term deposits and variable return assets like stocks. The choice can be made according to one’s risk appetite and other financial considerations.
In the last few years, blockchain-based cryptocurrencies have become quite popular across the world. Risks aside, these speculative assets, which include Bitcoin and Dogecoin, have a large number of admirers. The Australian Securities and Investments Commission’s (ASIC) findings suggest Australians also hold cryptocurrencies in large numbers. Let us explore and also talk a little about the legal status of Bitcoin in Australia.
Is Bitcoin popular?
Many surveys by private agencies point toward the high ownership of Bitcoin and altcoins (Bitcoin’s alternative cryptos). However, many experts claim these surveys could be motivated by the interests of cryptocurrency intermediaries like exchanges and wallet operators. The ASIC survey of retail investors was conducted in November 2021, but the findings were made public only a few months back. It was found that 44% of the respondents owned cryptocurrency.
It was also reported that a large proportion of investors were using mediums like YouTube to gather information on cryptocurrency assets. Notably, this survey was conducted when prices of assets like Bitcoin and Ethereum were hovering at all-time high levels. Cryptos have since lost a substantial value, which means some investors might have shunned these assets.
Data provided by CoinMarketCap.com
Bitcoin’s legal status
Bitcoin or any other cryptocurrency is not outlawed in Australia. Trading in these assets is allowed, and the Australian Taxation Office (ATO) levies capital gains tax if the investor makes a profit. That said, many officials have warned against the risks of dealing in these ultra-volatile assets. The fall of big names like TerraUSD, Celsius, and FTX has prompted calls for tougher regulations in this space. Australia does not recognise either Bitcoin or any other blockchain-based crypto as legal money.
Bottom line
There is little doubt that Bitcoin and other cryptos are popular in the country. In fact, the ASIC survey found these are the second-most popular assets after listed shares. However, popularity does not directly mean success. Bitcoin and Ether have lost value since the ASIC survey last November. Projects like the TerraUSD stablecoin and the FTX exchange collapsed this year, which must have alerted enthusiasts. No matter what the current popularity status of Bitcoin is in Australia, there are growing calls for consumer protection through a tough regulatory oversight of the cryptocurrency space.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
