Australian pension funds expect clear regulation of cryptocurrencies

Professional organizations are interested in cryptocurrency investments. But the lack of a regulatory framework prevents them from moving from thinking about it to advising clients and developing customized strategies.

SMSF is the Australian Association of self-managed pension funds. Their main priorities are ensuring a decent standard of living for every Australian after retirement and the right to control their own destiny. Against the backdrop of the rapid rise in the popularity of cryptocurrencies in the Asia-Pacific region, the Association is also showing interest in virtual currencies.

The only obstacle so far to investing in tokens is the lack of transparent regulation. Despite implementing a regulatory framework in neighboring states, Australia cannot yet demonstrate it. This causes a severe dissonance between the demand for digital currencies and the offerings of financial institutions, particularly in the SMSF area.

We really want to advise our clients on this subject, but we don’t know how to do it because it’s not yet regulated.

said Caroline Bowler, CEO of Australia’s largest digital asset exchange, BTC Markets.

Pension funds in Australia control large amounts of capital. For example, at the end of 2021, the sector ranked fifth with an estimate of $2.3 trillion. With inflation considered, fund representatives view innovative blockchain technology and cryptocurrencies as a potentially stable investment, unlike fiat currencies.

For example, one of the leading funds, Rest Super, has previously said that cryptocurrencies are seen as a way to diversify members’ savings. However, investing is not possible shortly because of the need for discussions about the regulation and security of holders.