Australia’s Crypto Boom: Growing Adoption and 17% Ownership Among the Young
Australia has witnessed significant growth in its crypto market, both in terms of ownership and adoption. According to Finder’s Crypto Adoption report from November 2022, Australia ranks 9th out of 26 countries globally in terms of crypto adoption. The country boasts a crypto ownership rate of 17%, which surpasses the global average of 15%.
One striking characteristic of the crypto user base in Australia is its youthfulness, with a notable proportion of crypto investors being under the age of 24. While Bitcoin remains the dominant cryptocurrency in Australia, other cryptocurrencies like Ethereum are also gaining traction among Australian users.
The number of cryptocurrency users in Australia has been steadily increasing, with around 25.6% of Australians owning some form of cryptocurrency in 2022. This represents a significant rise from previous years. This upward trend is fueled by a growing interest in digital assets for investment, savings, and transactions. The top three cryptocurrencies held by Australians are Bitcoin, Ethereum, and Binance Coin, while Dogecoin and Cardano also have a presence in the market, albeit to a lesser extent.
Currently, more men than women hold cryptocurrency in Australia. However, there has been a rapid increase in the number of women entering the crypto space, indicating a move towards greater gender balance in the industry. Nonetheless, only 31% of crypto owners in the country are women. This imbalance can be attributed, in part, to differing financial risk tolerances between genders, as studies suggest that women tend to be more risk-averse when making investment choices, including cryptocurrencies.
A significant portion of the Australian population remains skeptical about cryptocurrencies, with 43% of non-crypto owners perceiving it as too risky. This sentiment is stronger among non-crypto investors, with 32% preferring traditional investments over cryptocurrencies.
Popular crypto apps in Australia include Cointree, CoinSpot, and BTC Markets, which offer user-friendly interfaces and a range of services such as trading, wallet services, and educational resources. Among Australian crypto owners, 60% use hot wallets, such as those provided by Cointree.
Australia’s regulatory framework for cryptocurrencies is primarily governed by the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC). Key regulations revolve around anti-money laundering (AML), counter-terrorism financing (CTF), and initial coin offerings (ICOs). Notably, crypto has faced increasing scrutiny in Australia, with actions taken against platforms like Binance Australia, including loss of access to Australian dollar deposits and withdrawals. The Australian government has also proposed subjecting digital asset platforms to the same laws as other financial services providers, requiring them to obtain a financial services license and conduct routine audits of customer funds.
In response to the tightening restrictions on crypto payments, Blockchain Australia, an industry body representing the blockchain and digital currency industry in Australia, has implemented new initiatives to combat crypto scams and fraud.
Australia is set to approve its first spot Bitcoin ETFs by the end of 2024, with the Australian Securities Exchange (ASX) leading the way. Local firm BetaShares is reportedly developing a product for the ASX, while DigitalX and VanEck have also expressed interest in launching their own Bitcoin ETFs. This move is expected to provide more institutional investors with exposure to Bitcoin and potentially increase overall investment in cryptocurrencies in Australia.
Australia is home to several successful crypto startups, including Power Ledger, which focuses on blockchain-based energy trading, and DigitalX, a blockchain technology and investment firm.
Overall, Australia’s cryptocurrency landscape has experienced remarkable growth, ranking ninth globally in terms of crypto adoption. With a high ownership rate of 17% and a young demographic driving this trend, the country is poised to continue its crypto boom.
