Australia Holds Back on Crypto Reserve as US Moves Forward

Despite the United States making headlines with its plans for a strategic crypto reserve, Australia is taking a different route. The Albanese government has no current plans to follow in the US’s footsteps, prioritizing digital asset regulation instead.

On March 2, US President Donald Trump directed the President’s Working Group on Digital Assets to include Bitcoin, Ether, XRP, Solana, and Cardano in a newly proposed Crypto Strategic Reserve. Several US states have also started exploring ways to add crypto to their balance sheets, signaling a potential shift in how digital assets are integrated into national financial policies.

However, a spokesperson for Australian Assistant Treasurer and Financial Services Minister Stephen Jones made it clear that the government’s priority remains regulatory oversight rather than asset accumulation. During an interview, the spokesperson stated that the administration was focused on developing a framework for a “fit-for-purpose digital asset regulatory regime” and emphasized the economic opportunities presented by blockchain technology.

Complexity in Crypto Reserves

While the idea of a national crypto reserve has gained traction in some circles, experts warn that such a move comes with significant risks.

Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, pointed out that the extreme price volatility of crypto could pose a challenge. “If one of the main goals of your country’s strategic reserve is to hedge against crises, the price volatility of crypto is a problem,” he noted.

Rather than a direct reserve, Matthews speculated that a more practical approach might be the development of a sovereign wealth fund that holds crypto as part of a diversified portfolio.

Regulatory Focus Grows in Australia

While Australia may not be pursuing a strategic reserve, regulators are keeping a close eye on the sector. The Australian Transaction Reports and Analysis Center (AUSTRAC) announced in December that it will shift its enforcement priorities toward crypto in 2025, particularly targeting unregulated crypto ATM providers.

The Australian Securities and Investment Commission (ASIC) also released a consultation paper in December, proposing that many digital assets be classified as financial products, requiring firms to obtain licenses.

Despite the government’s cautious stance, Australia has rapidly emerged as a hub for crypto ATMs. Data from Coin ATM Radar shows that the country now ranks third globally, with over 1,453 ATMs in operation—up from just 67 in August 2022.