John O'Loghlen, managing director of Coinbase APAC, believes that Australia is on the brink of producing its next wave of crypto "unicorns" - startups with a billion-dollar valuation. However, he argues that this potential won't be fully realized until there's more regulatory clarity surrounding crypto in the country.

According to O'Loghlen, Australian policymakers and traditional financial institutions have yet to fully grasp the level of innovation emerging from the country's crypto sector. He emphasizes the importance of legislative clarity around digital assets to enable proper funding for the sector and provide certainty to venture capitalists and other investors.

Despite some regulatory progress, such as the Treasury's consultation paper in October 2023 and informal regulatory discussions at the Blockchain APAC Summit in March, O'Loghlen believes that Australia is still behind the surge in retail and institutional demand for crypto.

Recent data from a 2024 investor survey by Australian crypto exchange Independent Reserve indicates significant crypto ownership in Australia, with around 27.5% of Australians owning cryptocurrency. Additionally, 35% of Australian crypto investors reportedly invest approximately $500 per month into digital assets.

O'Loghlen identifies the growing demand for stablecoins, digital remittances, and other capital-efficient crypto applications in the Australian fintech industry as fertile ground for the next multi-billion-dollar crypto company.

He also notes increasing demand for crypto products among retail investors, particularly in two main sectors. Firstly, there's a rise in interest from self-managed retirement funds allocating into crypto, despite the small percentage relative to their portfolio size. Secondly, there's a notable influx of "HENRYs" (High Earners Not Rich Yet) - working professionals with good earning potential who are educating themselves on crypto.

Looking ahead, Coinbase plans to expand its Stand with Crypto campaign to Australia, with senior leadership hosting events to help regulators and policymakers understand the potential benefits of cryptocurrency in the country. O'Loghlen stresses the importance of showcasing real use cases to government representatives and policymakers in Canberra.

O'Loghlen's sentiments align with those of Kraken Australia's MD Johnathon Miller, who views current market conditions as an "inflection point" for crypto in Australia.