Coinbase backs Melbourne marathon, offering runners $20 in Bitcoin to raise profile

The crypto industry heavyweight says Australian regulators ‘don’t appear to be in a great hurry’ to recognise digital currencies as an alternative asset class that’s used by more than a quarter of the population.

Melbourne Marathon’s partnership with Coinbase aims to introduce 35,000 Australians to blockchain.

Coinbase is intensifying its campaign for Australia’s laws to be rewritten to recognise cryptocurrencies as the industry heavyweight becomes a sponsor of the Melbourne Marathon to catapult the alternative asset class into the mainstream.

By backing the marathon, which will be held on Sunday, Coinbase is eager to show how the technology that underpins crypto can be used for a broad range of purposes.

This includes bringing about 35,000 Australians onto blockchain – the platform crypto runs on that allows it to be sent between parties without using a bank – by creating the first “permanent record of Australian marathon results”.

Upon completion of the race, participants will be able to redeem a collectable “digital trophy” that will allow them to certify their finishing times and access including performance metrics, official race times, a digital medal and runner bib.

Runners will also be eligible for $20 in Bitcoin after their first Coinbase trade by signing up with a special code, designed to give them a “safe and secure platform to engage with the crypto economy”.

The crypto sector is eager to shake off its seedy image that has been marred by the collapse of exchanges such as FTX and show how it can be used for legitimate purposes and highlight its elevation to a genuine asset class.

Cryptocurrency is no longer the niche interest it once was, with more than a quarter of Australians owning cryptocurrency.

But Coinbase Asia Pacific managing director John O’Loghlen says laws and regulations have failed to keep up with the constantly evolving sector that has captivated businesses and investors alike.

John O’Loghlen says Australia’s financial watchdog is a ‘middle of the road regulator’. Picture: Max Mason-Hubers

“You have the regulators in the Emirates in the Middle East working very hard to attract human capital and capital to that market. They’re probably the most progressive in the market, and then we also have an international exchange we’ve recently launched out of Bermuda, for accredited investors and qualified investors that we believe is also domiciled in an environment where they’re very savvy and aware of the regulations needed to keep offering these innovative product to consumers,” Mr O’Loghlen said.

“The reality is that, you know, 5.6 million Aussies is about 27 per cent of the population. And then of those of that cohort, you know, two thirds have traded crypto at least once a month. We’ve got an average portfolio of $20,000 so you know the trains left the station in terms of an asset class.”

But he said Australia’s financial watchdog had described itself as a “middle of the road regulator”, which was holding back the sector.

“They don’t appear to be in any great hurry to offer, you know, kind of leadership in this space, and so we are trying to work with the regulators and also do some policy work around that.”

But Australia is struggling to keep up with the digital currencies with outdated regulations leaving the sector “vulnerable” according to some industry experts.

And it’s not just exchanges calling for action. Australia’s biggest bank says “political will” is needed to support the asset class’s growth.

Commonwealth Bank’s managing director for blockchain and digital assets Sophie Gilder said last month that she saw the “future of money in a tokenised future economy where there will be a variety of different forms of tokenised money”.

“We have been looking into the space since 2016 making gradual changes to potential structures that we might want to explore, but we’re still working through some regulatory uncertainty there,” Ms Gilder said.

Australia has taken some important steps towards reform, including consulting on a draft approach that is broadly supported. This would deliver a regulatory framework for crypto, but more legislative efforts are still needed to enact this.

Despite the best efforts of local industry players, the Treasury and others, legislation could be delayed into 2025 (or beyond), which is a deeply unsatisfactory outcome for crypto users and businesses in Australia.

John O'Loghlen, the local boss of the US crypto giant Coinbase. Picture: Max Mason-Hubers

Mr O’Loghlen said Coinbase would bring the ‘Stand With Crypto’ movement – a non-profit aimed at uniting global crypto advocates – to the Tech Council of Australia’s annual summit in Melbourne next month.

“We’ve got 1.3 million advocates who have signed up for that, for pro-crypto policies. So we’re seeing globally … representatives who know that their constituents want this particularly demographically, if they’re under a certain age.

“But then you’ve also got big chunks of people, kind of in the boomer and older audience in the SMSF (self-managed super) type space, who are being advised by their family and grandchildren and children, just with a classic diversification portfolio approach, that they should have one or 50 basis points, 100-150 basis points in crypto.

“So we are trying to work with those audiences to educate and to show that you can’t, kind of, turn back time. We need to ensure that this is a priority in Canberra, and there are a number of representatives on both sides of the aisle, and additionally, with the Teals who know that future generations want this.”

Marcus Gale, event director of the Nike Melbourne Marathon Festival, said: “Coinbase is a trusted cryptocurrency platform used by millions globally, and we’re excited to partner with them to provide a new way for runners to interact, engage and celebrate their race day achievements”.

“For the first time ever, people will have a personalised and enduring digital memento of their results using this groundbreaking technology.”

Of the digital trophy holders, 50 people will also receive a “golden trophy”, which will provide them with guaranteed registration for their choice of distance at the 2025 Melbourne Marathon.