The federal advisory suggests exploring four major areas to support a safer adoption of cryptocurrency in Australia and dampen the cybersecurity threats. In that context, Cyber Security Industry Advisory Committee, the Australian cybersecurity advisor, highlights different crypto-related opportunities for the government to undertake as it prepares for the global mainstreaming of cryptos.
This study, which was released by Australia’s Department of Home Affairs and titled Exploring Cryptocurrencies, highlights the surge in crypto adoption as the nation undergoes a rapid transformation to an advanced digital economy:
“There is a need for regulatory settings that provide greater clarity and confidence about how the cryptocurrency market can operate in Australia.”
The federal advisory recommends the exploration of four main areas that can “help ensure the safe adoption of cryptocurrencies in Australia”. They include operator transparency, capability (awareness through specialized training), minimum cyber security standards, and the follow-the-lead approach.
With a major aim of mitigating the cybersecurity threats aimed at cryptos, the committee recommended mandating the minimum cyber security standards for the crypto exchanges and Australian firms that hold cryptos.
Kraken’s managing director for Australia Jonathon Miller thinks that:
“Minimum standards for security, and greater resourcing to fight sophisticated cybercrime will go a long way to protecting investors.”
Furthermore, the advisory indicated a heightened focus on increased public awareness through specialist training on the available cryptocurrency opportunities and corresponding threats and cybercrimes. It now recommends a “follow-the-lead” approach wherein Australia learns and implements the international best practices in the cryptocurrency sector.
While highlighting the inherent pseudo-anonymity of cryptocurrency, the committee calls for massive transparency around the registered crypto exchanges and blockchain-based firms:
“Educational programs with accurate, consistent messaging will allow investors to better understand both the investment and cybersecurity risks while helping to demystify cryptocurrencies for all Australians.”
Apart from these recommendations, the Cyber Security Industry Advisory Committee pointed to several opportunities that accompany mainstreaming of cryptos. The study proves that blockchain has a disruptive potential to tokenize financial assets like carbon credits, loans, and real estate.
Furthermore, accepting cryptos “enables businesses to tap into a new set of customers.” Eventually, the study shows that offsetting carbon emissions is one of the largest opportunities as the cryptocurrency makes its way into the world of mainstream adoption.
“In 2021, Bitcoin outperformed all major asset classes, one-upping crude oil, NASDAQ, the S&P 500, and gold. Moreover, the number of “hodlers” is trending in a positive direction, signaling crypto’s long-term viability.”
Citing economic equality as one of the key benefits, Ehrlich also stated that cryptocurrency offers access to the investor segments that missed out on past booms.