The Cyber Security Industry Advisory Committee, the Australian cybersecurity advisor, highlights various crypto-related opportunities for the government to undertake as it prepares for the global mainstreaming of cryptocurrencies.
The study, released by Australia’s Department of Home Affairs and titled Exploring Cryptocurrencies, cites the rise in crypto adoption as the country 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 key areas that can “help ensure the safe adoption of cryptocurrencies in Australia” — minimum cyber security standards, capability (awareness through specialized training), the follow-the-lead approach and operator transparency.
With a primary goal of reducing the cybersecurity threats aimed at cryptocurrencies, the committee recommended mandated minimum cyber security standards for crypto exchanges and Australian businesses that hold cryptocurrencies. Crypto exchange Kraken’s managing director for Australia Jonathon Miller believes that “minimum standards for security, and greater resourcing to fight sophisticated cybercrime will go a long way to protecting investors.”
In addition, the advisory suggested an increased focus on increased public awareness via specialist training on the available crypto opportunities and corresponding cybercrimes and threats. It recommends a "follow-the-lead" approach wherein Australia learns and implements international best practices in the crypto space.
Highlighting the inherent pseudo-anonymity of crypto, the committee calls for increased transparency around registered crypto exchanges and blockchain-based companies:
“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.”
In addition to the recommendations, the Cyber Security Industry Advisory Committee highlighted a number of opportunities that accompany mainstreaming of cryptocurrencies. The study reveals blockchain’s disruptive potential to tokenize financial assets including loans, carbon credits and real estate.
Moreover, accepting cryptocurrencies “enables businesses to tap into a new set of customers.” Finally, the study reveals that offsetting carbon emissions is one of the biggest opportunities as crypto makes it way into the mainstream.
In a dialogue with Cointelegraph, co-founder and CEO of Voyager Digital Stephen Ehrlich opined why patience is the key for crypto businesses:
“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 main advantages, Ehrlich also said that crypto gives access to investor segments who missed out on past booms.