To facilitate a safer adoption of crypto in Australia and mitigate cybersecurity dangers, the federal guidance proposes looking into four critical areas.
The Australian cybersecurity advisor, the Cyber Security Industry Advisory Committee, highlights a number of crypto-related opportunities for the government to pursue as it prepares for the worldwide mainstreaming of cryptocurrency.
‘Exploring Cryptocurrencies,’ a research produced by Australia’s Department of Home Affairs, mentions the surge in crypto acceptance as the country faces a rapid shift to an advanced digital economy:
“Regulatory frameworks that provide greater clarity and certainty about how the bitcoin industry can operate in Australia are required.”
Minimum cyber security standards, capability (knowledge through specialised training), follow-the-lead strategy, and operator openness are all included in the Federal advise as areas that can “help secure the safe adoption of cryptocurrencies in Australia.”
The committee suggested mandating baseline cyber security requirements for crypto exchanges and Australian businesses that hold cryptocurrency, with the primary goal of reducing cybersecurity risks aimed at cryptocurrencies. Jonathon Miller, the Managing Director for Australia at crypto exchange Kraken, feels that “minimum security standards and increased manpower to combat sophisticated cybercrime will go a long way to protecting investors.”
In addition, the recommendation recommended that a greater emphasis be placed on raising public knowledge through professional training on the potential crypto possibilities as well as the corresponding cybercrimes and hazards. It all suggests that Australia take a ‘follow-the-leader’ approach in the crypto area, learning and implementing worldwide best practises.
The committee advocates for enhanced openness around registered crypto exchanges and blockchain-based enterprises, citing crypto’s intrinsic pseudo-anonymity:
“Educational initiatives with accurate, consistent messaging will assist investors better grasp both investment and cybersecurity risks, while also demystifying cryptocurrencies for all Australians,” says the report.
The Cyber Security Industry Advisory Committee also noted a variety of opportunities that come with the mainstreaming of cryptocurrencies, in addition to the suggestions. The study demonstrates how blockchain might be used to tokenize financial assets such as loans, carbon credits, and real estate.
Accepting cryptocurrency also “allows enterprises to reach out to a new group of clients.” Finally, as cryptocurrency becomes more mainstream, the analysis finds that offsetting carbon emissions is one of the most promising opportunities.
Stephen Ehrlich, co-founder and CEO of Voyager Digital, explained why patience is crucial for crypto firms in an interview with Cointelegraph:
“Bitcoin beat all major asset classes in 2021, outperforming crude oil, the NASDAQ, the S&P 500, and gold.” Furthermore, the number of “hodlers” is increasing, indicating that crypto’s long-term sustainability.”
One of the key benefits, according to Ehrlich, is that crypto provides access to investor segments that have been left out of previous booms.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.