Australia’s Crypto Surge: 17% Ownership and Growing Adoption Among the Young

The crypto market in Australia has experienced significant growth in ownership and adoption in recent years. According to Finder’s Crypto Adoption November 2022 report, Australia ranks ninth out of 26 countries for crypto adoption, with a 17% ownership rate, surpassing the global average of 15%.

Youth-Driven Growth in Crypto Adoption

A notable portion of Australian crypto investors are under the age of 24, indicating a strong interest among younger demographics. Bitcoin remains the dominant cryptocurrency in the country, with Ethereum also gaining popularity.

Steady Increase in Crypto Users

The number of cryptocurrency users in Australia has been steadily rising. In 2022, around 25.6% of Australians owned some form of cryptocurrency, a significant increase from previous years. This trend is driven by growing interest in digital assets for investment, savings, and transactions.

The top three cryptocurrencies held by Australians are Bitcoin, Ethereum, and Binance Coin, with Dogecoin and Cardano also having a significant presence.

Gender Breakdown of Crypto Users

Currently, more men than women hold cryptocurrency in Australia. However, the number of women entering the crypto space has been increasing rapidly. In 2021, the number of women involved in cryptocurrency more than doubled, although they still only represent 31% of crypto owners. This imbalance is partly attributed to differing financial risk tolerances between genders.

Popular Crypto Platforms

Crypto apps like Cointree, CoinSpot, and BTC Markets are popular among Australian users. These platforms offer user-friendly interfaces and a range of services, including trading, wallet services, and educational resources. Hot wallets provided by platforms like Cointree are used by 60% of Australian crypto owners.

Regulatory Environment

Australia’s regulatory framework for cryptocurrencies is governed by the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC). Key regulations include measures related to anti-money laundering (AML), counter-terrorism financing (CTF), and initial coin offerings (ICOs).

The crypto market in Australia has been under increasing scrutiny. Last year, Binance Australia announced that customers would lose access to Australian dollar deposits and withdrawals due to a decision by its third-party service provider. ASIC officials conducted searches at Binance Australia’s offices in July. In October, the Australian government proposed that digital asset platforms be subject to the same laws as other financial services providers, including obtaining financial services licenses and undergoing continuous monitoring and audits.

Industry Response and Initiatives

In response to regulatory restrictions, Blockchain Australia has launched initiatives to combat crypto scams and frauds.

Approval of Crypto ETFs

The Australian Securities Exchange (ASX) is expected to approve the country’s first spot Bitcoin ETFs by the end of 2024. Local firm BetaShares, DigitalX, and VanEck are among the contenders developing products for the ASX. This move is anticipated to increase institutional investment in cryptocurrencies in Australia.

Successful Crypto Startups

Australia is home to several successful crypto startups, such as Power Ledger, which focuses on blockchain-based energy trading, and DigitalX, a blockchain technology and investment firm.

The Bottom Line

Australia’s cryptocurrency landscape has seen notable growth, with the nation ranking ninth globally in crypto adoption. Approximately 17% of Australians own some form of cryptocurrency, driven by a young demographic. The primary cryptocurrencies held are Bitcoin, Ethereum, and Binance Coin, with Dogecoin and Cardano also present. On the regulatory front, Australia’s framework, governed by ASIC and AUSTRAC, focuses on AML, CTF, and ICOs. Recent regulatory actions have increased scrutiny and operational restrictions for platforms like Binance Australia. Blockchain Australia is actively working to address crypto scams and frauds. The approval of crypto ETFs by the ASX is expected to further boost the market.