Australia's net zero obsession, high taxes holding back crypto sector as other nations capitalise on its 'transformative potential', top tech CEO says
Bitcoin's surge past US$100,000 this month, driven by the US Treasury's plan to expand its Strategic Bitcoin Reserve, marks a key moment in crypto's historic if volatile journey.
Since its inception in 2009, Bitcoin's price has been a rollercoaster: from $0.40 in 2010 to surpassing $100,000 in 2025.
Not many asset classes have provided returns in this vicinity – select top-performing stocks like NVIDIA or Tesla other rare examples.
The question of course on everyone's mind?
Is this meteoric rise sustainable, is it still just the beginning, or are we teetering on the edge of another correction?
With Bitcoin's market cap now dancing around US$2.16 trillion, let's dive into its global impact, policies, and implications. A primer – what you need to know about the global crypto industry in five minutes
Since its 2009 debut Bitcoin has evolved into a trillion-dollar ecosystem, weaving decentralised finance (DeFi), non-fungible tokens (NFTs), stablecoins, and blockchain applications into the fabric of global finance.
Cryptocurrencies – digital assets secured by cryptography on decentralised blockchain networks - fascinate the imagination for their inherent transparency and immutability.
Bitcoin remains the benchmark for a decentralised store of value, Ethereum captivates with smart contracts powering DeFi and NFTs, and stablecoins like Tether (USDT) and USD Coin (USDC) intrigue for enabling trading and remittances.
But can crypto truly democratise wealth, or are we chasing a speculative bubble?
As of May 2025, daily trading volumes in global crypto top $100 billion.
Over 420 million users worldwide fuel adoption, from underbanked communities to institutional giants.
Yet, volatility – evident in Bitcoin's climb from $62,000 in October 2024 to $110,000 now - along with regulatory uncertainty and mining's environmental toll, keeps a core question open: over the long term, how will cryptocurrency balance innovation with stability?
Governments are wrestling with this fundamental question, creating a patchwork of regulatory approaches. Let's unpack them: The Trump administration's crypto ambitions
Perhaps the biggest regulatory story in the crypto arena right now is the Trump administration's pro-crypto pivot.
From a core campaign promise in the 2024 presidential election that arguably moved key voter cohorts into Trump's column, to the administration's current regulatory framework launched in January 2025 – it's been a market defining ride.
President Trump appointed David Sacks as the White House AI and Crypto Czar, aiming to make the U.S. the 'world capital of crypto.'
The GENIUS Act, introduced with Senators Tim Scott and Representative French Hill, targets stablecoin regulation, with Senator Bill Hagerty noting, 'Our goal is to create a framework that encourages innovation while protecting consumers.'
Then we have Trump's March 2025 executive order to create a Strategic Bitcoin Reserve, using seized cryptocurrencies to avoid taxpayer costs, a move that sparked Bitcoin's climb past $90,000 in November 2024 and $100,000 in December.
Mr Sacks recently stated that at one point in time, the US accumulated about 200,000-400,000 bitcoin on the federal balance sheet through civil and criminal asset forfeitures and sold roughly half of it for $360 million total through multiple auctions between 2014 and 2016.
It's fun to speculate what a parallel reality might have looked like if the US government had held that bitcoin – it would be worth $20 billion today. The World's largest asset manager takes the blockchain leap
In April 2025, the world's largest asset manager BlackRock ($USD 11.5T AUM) partnered with BNY Mellon to file for 'DLT Shares' in its $150 billion Treasury Trust money market fund.
These Distributed Ledger Technology (DLT) Shares use blockchain to mirror share ownership, promising faster settlements and transparency for institutional investors with a $3 million minimum.
BlackRock's CEO Larry Fink said, 'Tokenisation will revolutionize investing' by reducing market friction.
This builds on their $2.5 billion BUIDL fund on Ethereum and Solana.
So what happens when Wall Street co-opts decentralised tech?
Are we seeing innovation or a corporate takeover of crypto's promise? Regulatory benchmarking – where global markets stand
Crypto's global footprint, adoption and regulation vary wildly.
An assessment of adoption (user base, transaction volume, infrastructure, percentage, and absolute number of crypto users) and regulatory favourability (clarity, support for innovation, investor protection) by key market helps paint a macro picture.
The US leads with high adoption (15 per cent of its 340 million population, or 50 million users) and moderate regulation, bolstered by platforms like Coinbase and BlackRock's initiatives as described above, though compliance costs remain high.
Singapore follows closely with strong adoption (14 per cent, five million users) and the most favourable regulatory environment, thanks to the MAS's clear licensing and tax incentives.
The EU ranks third with strong adoption (10 per cent, 40 million users) and a robust MiCA framework, despite strict KYC/AML rules.
India exhibits high adoption (7 per cent, 100 million users) but is tempered by low-to-moderate regulation due to heavy taxes and unclear licensing regimes.
Nigeria's very high adoption (10 per cent, 22 million users) is constrained by low regulatory clarity post a 2021 ban.
China is one of the most restrictive markets and thus lags with low adoption (1 per cent, 10 million users) and hostile regulations.
Finally, Australia trails with moderate adoption (only 4 per cent of the population, or 1 million users) and regulation, hindered by licensing delays and conservative banking strategies, thereby falling behind more progressive markets like the US and Singapore. What to expect from here?
Many believe crypto has the potential to be a great game-changer for the 21st century economy.
The Trump administration's audacious crypto agenda, with its Strategic Bitcoin Reserve paves the way for a potential seismic shift that could cement the US as the global crypto epicenter.
For the world, this policy could accelerate mainstream adoption, drawing billions into digital assets and challenging traditional finance.
Australia's sophisticated consumer market offers a valuable tailwind into this trend, with 25 per cent of 18-34-year-old Australian's owning crypto according to the 2024 Independent Reserve survey.
Firms like BetaShares launched crypto ETFs in 2024 and ASIC and AUSTRAC provide regulatory guardrails.
Blockchain could unlock the potential of Sydney and Melbourne as fintech hubs in the Asia-Pacific region, and crypto's role in cross-border trade could boost the nation's export footprint.
However, Australia's regulatory pace and uncertainty, restrictive banking and high taxes and compliance costs hold this sector back.
Net zero goals conflict with crypto mining needs.
Australia's famed superannuation funds allocate one to five per cent to crypto lured by Bitcoin's 60 per cent 2024 return but remain primarily focused on traditional assets and lag when compared to innovations such as BlackRock's blockchain-based DLT Shares offering.
Small markets like Australia must swiftly innovate and align regulatory policies with global leaders to seize crypto's transformative potential, or risk being sidelined in this pivotal and rapidly unfolding next chapter of the digital economy.
Kosha Gada is a tech entrepreneur who also serves as a board member of sports betting platform PointsBet. She is a broadcast commentator on US and international current affairs, appearing live three nights a week on Sky News Australia
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