- Nearly 60% of Australians distrust crypto, highlighting worries over unclear regulations.
- Younger investors, especially Gen Z, continue to dominate crypto markets.
- New regulations aim to provide clarity on crypto exchanges, stablecoins, and financial services.
In Australia, cryptocurrency use stagnated in 2025, as people still lost most of their trust, despite a year of significant reforms. According to a report by Index Box, an increasing number of Australians remain wary of digital assets until legal frameworks become more concrete, before joining the market. The fifth Australian Cryptocurrency Survey by Swyftx has found that nearly 60% of Australians no longer trust cryptocurrencies, a rise from 57 % in 2024. The figures indicate that uncertainty about regulation remains one of the significant obstacles to new investors, despite the government’s series of legislative efforts this year to enhance market confidence.
The Younger Investors Take the Lead
According to the survey data, Australians under 35 remain the leaders in terms of crypto trading participation and profits. Gen Z investors reported an average gain of nearly $ 9,958, and approximately 82% of investors reported profits in the last year.
The highest ownership is among the parents having children below the age of 18 at 39% versus 12% among parents having no children. In the meantime, just 6% of Australians aged 50 and over now own any digital assets. In March 2025, Treasurer Jim Chalmers proposed a four-pillar reform agenda aimed at increasing regulation in the crypto sector.
The plan will involve licensing of exchanges, a regulatory framework on stablecoins, strengthened regulation on taxation, and the regulatory sandbox to develop fintech. The reason behind these changes is to offer well-defined operational standards to crypto businesses and enhance investor protection.
Payments System Bill Expands Definition of Digital Platforms
In September, the Senate passed the Payments System Modernization Bill. This law expanded the legal definition of a “payment system” to include digital wallets and stablecoin issuers. The reform gives regulators broader authority to monitor emerging technologies in Australia’s financial sector.
Later that month, new draft legislation was introduced to place digital asset exchanges and custodians under Australia’s existing financial services regime. This includes requirements to separate customer assets and follow stricter disclosure rules. The government has also pledged to engage with banks to address debanking concerns that have affected crypto firms’ access to financial services.
In addition, Home Affairs Minister Tony Burke recently proposed granting AUSTRAC the authority to restrict high-risk tools such as crypto ATMs . The measure responds to ongoing concerns about scams and money laundering in the digital currency space. Swyftx estimates that at least 1.6 million Australians could join the crypto market once regulations are finalized. However, for now, adoption remains on hold as potential investors wait for rules to be fully enforced.
