Crypto education takes centre stage in Australia
By Ben Brockliss, Vice President of Olliv Australia and New Zealand.
The cryptocurrency industry in Australia has witnessed remarkable growth and transformation in recent years. From its humble beginnings as a niche interest, cryptocurrencies have evolved into a mainstream asset class.
Research conducted by Swyftx found approximately 23% of Australians own cryptocurrency and data collected from the ASX indicated that 7% of new on-exchange investors are now turning to digital currencies as their first investment. Delays in the regulatory environment coupled with the wild west of crypto means emerging investors may have many pitfalls to overcome. Crypto companies, including Olliv, have an important role to play, and are responsible for the implementation of safeguards to prevent scams and fraud, such as enhanced security, compliance tools, and transaction monitoring. In addition, education is one of the strongest tools available to protect customers.
The cryptocurrency industry is notorious for its complexity, filled with technical jargon and intricate technology. Its complexity has often discouraged newcomers from participating in the market. Simple and accessible crypto education is essential for empowering users, breaking down barriers to entry and allowing a broader audience to tap into the potential of the digital economy.
Investment in education offers four key benefits:
Building Trust and Credibility – One of the primary reasons companies are shifting their focus towards education is to build trust and credibility within the cryptocurrency space. With the industry’s reputation for volatility and uncertainty, educating users about the benefits and risks of cryptocurrencies is essential for fostering trust and empowering investors.
Anticipating Regulatory Requirements – As regulatory frameworks for cryptocurrencies become more defined, companies must comply with new regulations. Between 2022 and 2023 the Australian Treasury conducted a token mapping exercise to better define and understand crypto assets in efforts to develop regulatory guide rails in Australia. At present, predominantly crypto companies self-impose the responsibility of providing education to help users understand the crypto ecosystem.
Addressing Customer Demand in Australia – Australia has seen a surge in cryptocurrency adoption in recent years. Users are demanding more accessible and user-friendly platforms. Companies are responding to this demand by incorporating educational features to cater to a diverse user base.
Consumer Protection – Everyone deserves to participate in the digital economy in a simple, secure way. It’s important for firms to provide crypto education to help protect consumers and provide them with the resources to make informed decisions. For example, Olliv invests heavily in cutting-edge security solutions, and 24/7 live customer support to safeguard users.
As crypto curiosity rises in Australia, firms recognise the need for education to attract and empower new users. For example, the concept of “crypto universities” has become more popular among Australian online crypto exchanges such as CoinSpot, Swyftx, and Independent Reserve. Moreover, the tertiary education system in Australia has a growing field of blockchain educational courses, as seen with Monash University’s Blockchain Technology Centre and R.M.I.T.’s Blockchain Innovation Hub.
Understanding the basics of blockchain technology, wallet management, and safe trading practices are pivotal to help individuals make informed decisions and reduce the risks associated with managing one’s crypto investments. In addition, it’s critical for potential investors to understand the difference between custodial and self-custodial models to ensure they are choosing an investment tool that works best for them: a custodial model holds customer assets on behalf of a customer, whereas a self-custodial model never holds customer assets which means the user is always in charge of their own assets.
As the industry evolves, we can expect to see more innovative educational initiatives and resources that will further demystify cryptocurrencies, making them more accessible and appealing to a broader audience. In this ever-changing landscape, crypto education will remain a cornerstone of a thriving and responsible cryptocurrency ecosystem in Australia.
In conclusion, the crypto education trend in Australia is a promising development for both the industry and its users. As the market continues to grow and mature, educating users about how to use and store cryptocurrencies is crucial for building trust, complying with regulations, and meeting customer demands.