Crypto adoption stalls as government reforms fall short for Australians

Australia’s cryptocurrency market stalls as investors await the implementation of new legislation governing digital assets, despite a year of extensive reforms. Swyftx crypto exchange published its fifth annual Australian Crypto Survey on Wednesday, revealing that adult ownership of digital assets remained unchanged, and trust in them continues to decline.

The Swyftx report revealed that nearly 60% of Australians do not trust cryptocurrency, up from 57% the previous year. It also showed that the top three reasons Australians do not own crypto assets are a lack of regulation (46%), a lack of knowledge about the asset class (45%), and concerns related to fraud (31%).

According to Swyftx, Australians believe that digital assets will play a crucial role in the nation’s economic future. Swyftx data showed that 4 out of 10 (39%) believe that cryptocurrency will be necessary to the economy, while 36% disagree.

The percentage of Australians under 50 who believe cryptocurrency will play a central role in the economy increases to 51%, representing roughly half of the adult population. A third (32%) of the respondents say they disagree that crypto will be important to the economy.

Investment trends shift among Gen Z

Jason Titman, CEO of Swyftx, said that many investors are more concerned with the actual implementation of the regulations than they are with the prospect of crypto regulation at some undefined point. Titman added that many people still see cryptocurrency as an iconoclastic asset class, which is not necessarily a desirable feature for investors with lower risk appetites.

The Swyftx report revealed that  Australians under 35 continue to be the most active and successful cryptocurrency investors in the nation. Approximately 82% of Gen Z traders reported making money in the previous year, with an average gain of around $9,958. Parents with children under the age of 18 have the highest ownership rate (39%), while non-parents have a rate of only 12%. Only 6% of Australians aged 50 and above currently own any digital assets.

Swyftx estimates that one in five (21%) or 4.5 million Australians currently own digital assets. At least 1.6 million more people are expected to join the digital asset market in 2026. 

“While there’s reason to be excited about the future impact of digital assets, most of the mainstream messaging around this asset class remains cautionary on scams and risk.”

–Jason Titman, Chief Executive Officer of Swyftx.

Titman claimed that young Australians are now investing in developing asset classes to diversify their finances. He argued that Gen Z and Millennials are undoubtedly more at ease with owning intangible assets than previous generations. The Swyftx CEO added that younger Australians are diversifying into other asset classes as a result of the exorbitant cost of real estate.

Jason Titman argued that, if current trends continue, cryptocurrency will overtake stocks as the preferred investment for Gen Zs and Millennials in a few years.  He explained that Gen Z and Millennials feel that to climb the property ladder, one needs a level of exposure to high-beta assets, such as a diversified portfolio.

Australia expands oversight of digital assets and ATM’s

As previously reported by Cryptopolitan, Tony Burke, Australia’s Minister for Home Affairs, announced new regulations on October 15 that allow the AUSTRAC to impose restrictions on cryptocurrency ATMs.  Burke stated that the new rules will prevent money laundering and shield vulnerable Australians from financial crime and scams.

The Home Affairs Minister of Australia referred to ATMs as a “high-risk product” that is connected to child abuse, scams, and money laundering.  Burke claimed that the change will enhance AUSTRAC’s capacity to mitigate the risks associated with money laundering linked to cryptocurrency ATMs.

In March, Australia’s national Treasurer, Jim Chalmers, unveiled a regulatory framework for stablecoins, featuring four pillars of reform: a review of improvements to the regulatory sandbox, exchange licensing, more specific tax guidelines, and other measures. 

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.