Cryptocurrency has been a buzzword for many years, and its popularity is only increasing. In Australia, cryptocurrency exchanges have come a long way since their inception. This article will look at the history and evolution of cryptocurrency exchanges in Australia.
The early days of cryptocurrency exchanges in Australia
The first-ever cryptocurrency exchange in Australia was launched in 2013 by a Melbourne-based startup called CoinJar. At the time, Bitcoin was the only cryptocurrency available for trading, and the exchange had a limited user base. However, cointree.com paved the way for other cryptocurrency exchanges in Australia to follow.
In 2014, two more exchanges were launched – Bit Trade Australia and BTC Markets. These exchanges offered a wider range of cryptocurrencies for trading and attracted more users. However, they still faced many challenges, including regulatory hurdles and the need for more understanding of cryptocurrencies among the general public.
In 2017, the Australian government passed legislation to regulate digital currencies under the Anti-Money Laundering and Counter-Terrorism Financing Act. This move has provided greater certainty to cryptocurrency businesses operating in Australia and helped increase public confidence in the industry.
The growth of cryptocurrency exchanges in Australia
In the years that followed, more cryptocurrency exchanges emerged in Australia. Some of the notable ones include Independent Reserve, Coinspot, and Swyftx. These exchanges offered a range of features, including lower fees, more cryptocurrencies, and better user interfaces.
As the popularity of cryptocurrency increased, so did the number of users on these exchanges. In 2017, the number of Australians using cryptocurrency doubled; by 2018, over 2 million Australians owned or used cryptocurrency. For durable exchanges
However, the growth of cryptocurrency exchanges in Australia had its challenges. In 2017, the Australian government passed new regulations requiring cryptocurrency exchanges to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and comply with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
While this was necessary to combat illegal activities and protect investors, it also added a significant burden on cryptocurrency exchanges to comply with regulations. Some smaller exchanges could not meet these requirements and had to shut down, while others had to invest in expensive compliance measures.
The future of cryptocurrency exchanges in Australia
Despite the challenges, the future of cryptocurrency exchanges in Australia looks bright. The increased interest in cryptocurrencies and blockchain technology has led to more investment in these areas. In 2020, the Australian government announced a $6.9 million investment in blockchain research, which will further boost the growth of cryptocurrency exchanges in the country.
In addition, cryptocurrency exchanges are continuously evolving and improving their services. Some exchanges now offer advanced trading features, including margin and futures trading, to attract more experienced traders.
The history and evolution of cryptocurrency exchanges in Australia show how far the industry has come. The growth has been impressive, from a small startup in Melbourne to multiple exchanges offering a range of cryptocurrencies and services. Despite regulatory challenges, the future of cryptocurrency exchanges in Australia looks promising, with more investment and technological advancements. As the industry continues to evolve, we can expect to see even more innovative services and features from these exchanges.