HOW BIG IS AUSTRALIA'S DIGITAL CURRENCIES MARKET?
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HOW BIG IS AUSTRALIA'S DIGITAL CURRENCIES MARKET?
EXPONENTIAL For the first time ever, the true
GROWTH IN
scale of the Australian digital
currencies market has been
AUSTRALIA’S revealed.
DIGITAL
A joint research project by ADCA and
Accenture gathered confidential
CURRENCY
organisational and operational data from
seven Australian Digital Currency
MARKET
Exchanges (DCEs).
Participants together represent
approximately 66 percent of the local
market.
The results reveal a rapidly expanding
industry that is already far bigger than
most believed.KEY FINDINGS
1) Billions are 2) Market growth has 3) Australia’s DCEs are 4) The majority of
changing hands via moved from growing rapidly to cryptocurrency
Australia’s Digital incremental to keep pace with the traders are males
Currency exponential market under 40
Exchanges (DCEs) • The month of December • In total, the seven • Some 83 percent of DCE
• In 2017, the estimated 2017 alone accounted for exchanges have 312,633 customers are male.
total value of digital 59 percent by value (and unique customers
• On average, 40 percent
currency trading (buying 48 percent by number of registered, of which
are aged 18 to 29 and 31
and selling of transactions) of all 232,566 were added in
percent are 30 to 39
cryptocurrencies) in trading activity recorded 2017.
years old.
Australia was circa by participants for the
• Participating DCEs had
$5.9bn. whole of 2017. • Just 18 percent are 40 to
an average of just 2.9
49, and only 11 percent
• This number is • The average value of a full-time employees in
are over 50 years of age.
extrapolated from our cryptocurrency trade in January 2017; this was
survey of approximately February 2017 was $230; close to four times higher
two-thirds of the local by the end of the year it (11.3) by December
industry, which reported was circa $1,800. 2017, and is expected to
$3.9bn in transactions in average 25.7 by the end
2017. of 2018.RESEARCH METHODS The information in this presentation represents the aggregated data from seven Australian Digital Currency Exchanges (DCEs). The data was collected in response to a quantitative questionnaire jointly issued by Accenture and ADCA. The seven participating DCEs are all members of ADCA. • Date fielded: 21 January 2018 to 9 February 2018 (data requested as at 31 December 2017) • Participants: Seven Australian Digital Currency Exchanges, representing approximately 66% of the Australian market • Methodology: The survey questionnaire requested commercially sensitive data. Longitude, the research partner for the project, acted as an independent data custodian under non-disclosure agreements with the exchanges. Participants completed the survey and uploaded responses directly to Longitude. Data from individual DCEs was consolidated (summed or averaged) to protect the confidentiality of participants, and to gauge the scale of the Australian market. Neither Accenture nor ADCA have received the individual submissions or any data from individual DCEs. • Limitations: It is important to note that this research does not capture digital currency volumes traded by Australians on exchanges domiciled outside of Australia. • All currency data is in Australian Dollars ($).
DETAILED FINDINGS
THE SIZE OF THE MARKET
Survey participants represent approximately 66 percent of the total Australian market
Total trading volumes for 2017
(total aggregated buy and sell transactions for all seven participating DCEs)
Value traded -$3,932,173,987
Number of transactions - 2,749,139
66% 66%
Extrapolated total Australia* trading volumes for 2017:
Value traded - $5,898,260,980
100% Number of transactions - 4,123,709 100%
*Estimated trading volume through Australian domiciled DCEs only (i.e. excludes Australians trading via exchanges based offshore).TRADING ACTIVITY SKYROCKETED IN LATE 2017
Total trade values and transactions per month in 2017
VALUE TRADED NUMBER OF TRANSACTIONS
1,400,000
1,300,000
$2,331,455,200
1,200,000
MONTHLY NUMBER OF TRANSACTIONS
1,100,000
December 2017 saw 59% of
1,000,000 the total trading value – and
900,000 48% of the total transactions –
for the whole calendar year.
800,000
700,000
600,000
$670,113,132
500,000
$174,110,256
400,000
$91,936,219 $91,030,309 $192,336,402
300,000
$12,680,420 $20,598,776 $144,608,113 $159,685,590
200,000
$14,727,724 $28,891,847
100,000
0
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17AVERAGE TRANSACTION SIZES GREW
OVER SEVEN TIMES HIGHER IN 2017
Monthly average transaction size
$2,000
$1,808 $1,777
$1,800
$1,600
$1,400 $1,284
$1,148
$1,200
$1,000
$882
$1,005
$915
$1,019
$500,000
The value of the
$800
largest cryptocurrency
$600 transaction ever
$421
$278 processed by a
$400
$242 $230
participating DCE
$200
$0
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17THOUSANDS OF NEW CUSTOMERS HAVE
REGISTERED WITH AUSTRALIAN EXCHANGES
Number of new, unique customers added in 2017
Total number of customers as at New customers added in Total customers as at
1 January 2017 2017 calendar year 31 December 2017
80,067 232,566 312,633
114,177
34,361
9,321 13,255 15,810 14,195 14,662
2,173 1,718 2,576 2,491 7,827
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17GROWING UP FAST:
EXCHANGES EXPAND AT PACE
How long have Australia’s DCEs
been established?
• The oldest DCEs participating in this
research have been in business just
five years.
• The youngest have been established
for less than one year.
• On average, participating DCEs
25.7
have been established for 3.4 years.
11.3
2.9
Average number of full- Average number of full-time Average number of full-time
time equivalent staff on equivalent staff on equivalent staff expected on
1 January 2017 31 December 2017 31 December 2018WHO IS TRADING CRYPTOCURRENCIES?
Male consumers aged 18 to 39 dominate the market, but exchanges are increasingly
attracting institutional clients such as investment banks and hedge funds.
Female 18 to 29 30 to 39
17% 40% 31%
Retail Retail and
customers institutional
only customers
57% 43%
65+
2%
40 to 49
Male 18%
50 to 64
83%
9%
Average Customer Gender Average Customer Age DCE Customer TypesMOST AUSTRALIAN EXCHANGES FOLLOW STRICT
CUSTOMER IDENTIFICATION PROCESSES
• DCEs will be regulated by AUSTRAC What percentage of your
customers trade against an 98%
from early April 2018, making it Australian bank account?
mandatory to comply with a range of
What percentage of your
anti-money laundering and counter- customers have an Australian 98%
address?
terrorism financing prevention
processes, in line with mainstream For what percentage did you
financial services. request customer ID verification
documents?
87%
• A high level of compliance is already For what percentage did you
conduct an external check with 71%
in place among the seven participating an ID screening service?
DCEs, including stringent know-your-
What percentage declined to
customer procedures. provide ID verification 12%
documents?CURRENCY ANALYSIS
WHICH CURRENCIES ARE AVAILABLE?
Average number of different currencies traded per exchange: 3.1
Ethereum
Ripple (XRP)
Six out of seven Three DCEs Classic (ETC)
All seven DCEs and Bitcoin
trade Ethereum trade Litecoin and Dash
trade Bitcoin Cash (BCH) are
(ETH) (LTC) (DASH) are
(BTC) traded by two
traded by one
exchanges each
exchange eachTRADING VOLUME BY CURRENCY
Bitcoin dominates, but over $500 million was traded in both Ethereum and Ripple in 2017
Copyright © 2018 Accenture. All rights reserved.AVERAGE VALUE PER TRADE BY CURRENCY
Bitcoin and Bitcoin Cash have the highest average trade values
• Bitcoin Cash recorded the highest Bitcoin Cash (BCH) - $1,545
average trade value, close to twice that
of Ethereum Classic and 50 percent
higher than Litecoin. Bitcoin (BTC) - $1,361
• Bitcoin Cash split from the original
Bitcoin network on 1 August 2017, Ripple (XRP) - $1,274
primarily to improve transaction
speeds.
Ethereum (ETH) - $1,192
Litecoin (LTC) - $1,067
Ethereum Classic (ETC) - $819
Copyright © 2018 Accenture. All rights reserved.HIGH-LEVEL IMPLICATIONS
1) Further regulation to protect 2) More consumer education
consumers Given the scale and growth rate of digital
In addition to the new anti-money laundering currency trading in Australia, the industry and
and counter-terrorism financing regulations, government should work together to help
regulators should move to increase consumers understand how to use and invest
consumer protection from fraud and system in cryptocurrencies responsibly.
failures (e.g. service provider default or
cybersecurity breach). This could potentially
involve a special Australian Financial
Services Licence for DCEs.
3) Stronger relationships with banks 4) Local trading should be superior
Significant funds are passing between DCEs Some consumers trade digital currencies via
and Australian banks with limited visibility. exchanges based outside Australia, where
Working together, DCEs and banks can there are often higher risks. The industry and
ensure stronger oversight and governance government should ensure the local market
procedures are put in place. remains strong, secure and efficient enough
to out-compete offshore exchanges.CONTACT Accenture Georgia Hewett, Corporate Communications Lead georgia.hewett@accenture.com +61 417 699 567
About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network— Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 435,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.au. Disclaimer: The contents of this material are for informational purposes only. Unless otherwise specified herein, the views and/ or findings expressed herein are Accenture’s own. The views and opinions expressed in this document are meant to stimulate thought and discussion. As each business has unique requirements and objectives, these ideas should not be viewed as professional advice with respect to your business. This document makes descriptive reference to trademarks that may be Copyright © 2018 Accenture owned by others. The use of such trademarks herein is not an All rights reserved. assertion of ownership of such trademarks by Accenture and is not Accenture, its logo, and intended to represent or imply the existence of an association High Performance Delivered between Accenture and the lawful owners of such trademarks. are trademarks of Accenture.
You can also read
