Synergist’s Andrew McPhee Sounds Alarm on Australia’s Crypto Brain Drain

Australia’s regulatory approach to crypto is driving development offshore, and its vacuum of high-quality crypto monetary advice is acting as a handbrake on investment, according to Andrew McPhee, founder of web3 financial education company Synergist. The post Synergist’s Andrew McPhee Sounds Alarm on Australia’s Crypto Brain Drain appeared first on Crypto News Australia.

Andrew McPhee, the creator of crypto monetary education firm Synergist, stated Australia’s ‘fast follower’ method to crypto guideline is driving Aussie web3 companies offshore. He also said Australia’s lack of professional monetary advice on digital assets is acting as a handbrake on crypto investment amongst investors aged over 50. Australia’s regulatory approach to crypto is driving innovation offshore, and its vacuum of high-quality crypto monetary advice is serving as a handbrake on investment, according to Andrew McPhee, founder of web3 monetary education firm Synergist.

Speaking on the Tapping Into Crypto podcast on June 26, McPhee said Australia’s ‘fast follower’ approach to crypto regulation– characterized by merely copying advances from other more innovative jurisdictions– is becoming a liability and needs to change. “We take a look at what America does, maybe the UK, and then we just copy what we think makes sense,” McPhee stated. The problem is, innovation’s happening so quickly now that you can’t afford to be a quick follower because you’re locking the Australian community out of that innovation– all the development will go elsewhere. Andrew McPhee, founder Synergist.

McPhee said this approach has already driven innovative Australian web3 companies offshore to jurisdictions with a more forward-looking approach: “Everyone’s going to UAE or Singapore, you know, to set up shop.” And this trend is likely to worsen once the US passes its crypto legislation, predicted to take place before the end of this year, he argues. “The United States is going to bring out their new guidelines in the coming months, that’s going to bring in, like a magnet, a lot of companies to repatriate back into the United States. Australia’s still gonna be 12 months away, you know we’re gonna see a lot of organizations just simply go ‘well, why would I go here’.” Andrew McPhee, founder Synergist.

Related: AUDD Launches Natively on Hedera, Pioneering Australian Dollar Stablecoin Innovation.

Lack of Advice Keeping Over-50s Aussies Out of Crypto

McPhee said one of the flow-on effects of Australia’s foot-dragging on crypto regulation has been an absence of quality, expert monetary advice on crypto. He stated that’s meant older Australians in particular have stayed away from digital assets, even as adoption among younger Aussies has continued to grow. “If you take a look at the numbers, […] about 32% of Australians have crypto […] the 25 to 34-year-old sector, […] more than 50% now own crypto,” McPhee explained. When you get to the older demographics, the over-50s, it’s about 8% […] That’s doubled in the last 3 years, so it is growing […] but in either case, it’s still well below the younger counterparts. Andrew McPhee, founder Synergist.

McPhee said this relatively low level of crypto investment by over-50s represents an opportunity for growth, but it’s currently being hindered by Aussie financial advisors’ lack of crypto knowledge. “We need to make it more accessible to that 50-plus bracket– they have got big portfolios, they’re skilled investors … but they don’t have time, they don’t know about it and when they talk and go to their accountant or financial advisor about it, they talk them out of it or just say ‘I can’t speak to you’ and just close the door in their face.” Andrew McPhee, founder Synergist.

This issue is partially explained by a culture of close-mindedness around digital assets widespread in the financial advice market, according to McPhee: “If I was to generalize, 50% of the advisors I speak with fall into the animal rock category … you talk to them and you go ‘you just don’t get it and you probably never will’.” And that’s scary, because that’s a real danger to the real advice market in my mind. Andrew McPhee, founder Synergist.

Related: Australian Financial Industry Labelled “Irresponsible” Over Crypto Ignorance.

But even among those who are open to digital assets, McPhee says there’s often simply a lack of knowledge around just how quickly the global landscape is changing. “They don’t understand that you’ve got sovereign wealth funds buying it, you have got company treasuries buying it, that there’s 670 million people around the world holding cryptocurrencies today, that stablecoins– there’s more value transacted in stablecoins than in Visa and Mastercard networks combined. They don’t understand this, because this is all recent– the last 2-3 years.” Andrew McPhee, founder Synergist.

For advisors who are open to learning about digital assets, McPhee said the issue remains a lack of regulatory clarity around what they can and can’t say to clients, or who they can refer them to for professional advice. The post Synergist’s Andrew McPhee Sounds Alarm on Australia’s Crypto Brain Drain appeared first on Crypto News Australia.