The Australian Cyber Security Industry Advisory Committee, highlights four key areas to support a safer adoption for crypto while also citing a number of crypto-related opportunities for the government to pursue.
‘Exploring Cryptocurrencies,’ 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:
“There is a need for regulatory settings that provide greater clarity and confidence about how the cryptocurrency market can operate in Australia.”
Some of the key areas include
Minimum cyber security standards, capability (knowledge through specialized training), follow-the-lead strategy, and operator openness are all included in the Federal advice as to 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 practices.
The committee advocates for enhanced openness around registered crypto exchanges and blockchain-based enterprises, citing crypto’s intrinsic pseudo-anonymity:
“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.”
Opportunities that comes with blockchain technology
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:
“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.”
One of the key benefits, according to Ehrlich, is that crypto provides access to investor segments that have been left out of previous booms.