Key Points
Australia’s administration has decided against establishing a strategic reserve for cryptocurrencies. Instead, they are prioritizing regulation. This decision differs from the approach of the United States, where President Donald Trump is working to make the country the “Crypto Capital of the World.”
A spokesperson for Assistant Treasurer and Financial Services Minister Stephen Jones didn’t explicitly rule out a crypto reserve. However, in an interview with Sky News Australia, they confirmed that the government’s focus is on the regulation of digital and crypto asset platforms.
Regulatory Focus
The spokesperson noted that the Albanese government is consulting on a proposed framework to create a suitable digital asset regulatory regime. They are working closely with the industry, recognizing that blockchain and digital assets offer significant opportunities for the economy, the financial sector, and innovation.
Australia has been proceeding cautiously with cryptocurrencies. The Australian Transaction Reports and Analysis Centre warned crypto businesses in late February to comply with anti-money laundering laws or face repercussions. The agency stated it was reviewing over 50 crypto providers and had already taken action against 13 for violations.
In December 2024, the Australian Securities and Investments Commission fined Bit Trade, a local operator of Kraken, AUD 8 million ($5.2 million at the time) for illegally offering a credit facility to over 1,100 customers.
President Trump revealed his plans in a March 2 post on Truth Social. He announced that XRP (XRP), Solana (SOL), and Cardano (ADA) would form the reserve. He later added that Bitcoin (BTC), and Ethereum (ETH), among other “valuable coins,” would also be included.
Following Trump’s announcement, Bitcoin’s value increased by 8%, surpassing $93,000. Ethereum experienced an 11% jump. However, these increases were modest compared to Cardano’s 66% surge, while Solana and XRP gained 20% and 28%, respectively. Despite the rally, the Crypto Fear & Greed Index remains in “Fear” territory at 33.
