Jason Titman, CEO of Swyftx, stated that these potential investors will enter the cryptocurrency market “once the regulations become clear.”

This forecast suggests that a large portion of potential crypto investors in Australia are “waiting on the sidelines” as long as regulatory uncertainty persists.

The survey conducted by Swyftx reveals that Australians’ trust in cryptocurrencies depends on regulations.

According to the results of the survey, almost a third of respondents said they would consider buying more crypto if cryptocurrencies were regulated.

However, 41% said they do not trust cryptocurrencies without regulation. These results suggest that regulations in the crypto market can increase investor confidence and interest.

The fact that 20% of the survey’s 2,229 adult respondents had never owned cryptocurrency before reveals that the majority of crypto investors in Australia have not yet entered the cryptocurrency market. Additionally, 43% stated that they do not have enough knowledge about how cryptocurrencies work.

“Right now, most investors are sitting on the sidelines waiting for consumer protections and regulations,” Titman said.

This shows that investors are delaying taking action to learn more about cryptocurrencies and wait for regulations in the market.

According to survey results from Swyftx, the number of current crypto holders in Australia is estimated at 3.9 million.

Additionally, it is stated that 1.3 million more people are considering entering the cryptocurrency market in the next 12 months.

This shows that potential investors are waiting for regulations to be clarified, and if regulations are met, the cryptocurrency market has great growth potential.

Swyftx’s survey found that despite Bitcoin reaching an all-time high of $73,750 in March 2024, crypto usage in Australia is experiencing a slight decline.

The percentage of people who own digital assets dropped from 23% to 20%. However, an 11% increase was observed in the Gen Z age group.

This shows that crypto usage is increasing in some age groups, but overall crypto usage is decreasing, and this trend is limited to certain age groups.

Over the last 12 months, most investors have made profits. While approximately 82% reported profits, Swyftx estimates the average profit at $9,600.

Titman predicts crypto adoption will remain “stagnant” until the country moves forward with regulations.

“The reality is that the number of investors willing to take the risk of entering an unregulated market is limited,” Titman said, warning that “Without regulation, adoption will slow.”

This statement highlights that regulations are a critical factor to accelerate crypto adoption.

Data from Australia supports the idea that regulations will enable rapid growth of the international crypto economy.

“A regulated industry will enable global crypto ownership to reach one billion,” Titman said.

This view suggests that regulations could increase interest in the crypto market and stimulate growth internationally.

The potential for regulations to stimulate the growth of the crypto market may lead governments to identify cryptocurrency regulations as one of their priority goals.

Currently, cryptocurrencies are considered legal and considered property in Australia.

Individuals who convert their investment earnings into cash must report these transactions to the tax authorities.

The government has promised to introduce legal regulations regarding stock exchange regulations and custody services.

However, there are no definitive rules on this issue yet. This uncertainty may affect investors’ interest and confidence in the cryptocurrency market.

Ensuring regulation is seen as a critical step to achieve broader acceptance and growth in the crypto market.