Australia’s Crypto Boom: Surging Ownership and Growing Popularity Among the Youth
By Ruholamin Haqshanas
Updated: May 31, 2024, 08:30 EDT | 4-minute read
The crypto market in Australia has witnessed remarkable growth in terms of ownership and adoption over the past few years.
According to Finder’s Crypto Adoption November 2022 report, Australia ranks 9th out of 26 countries globally in terms of cryptocurrency adoption, with a crypto ownership rate of 17%, surpassing the global average of 15%.
Notably, a significant proportion of crypto investors in Australia are young, under the age of 24.
While Bitcoin remains the dominant cryptocurrency in Australia, other cryptocurrencies such as Ethereum are also gaining popularity among Australian users.
Australia Experiences Significant Increase in Crypto User Numbers
The number of cryptocurrency users in Australia has been steadily rising. In 2022, approximately 25.6% of Australians owned some form of cryptocurrency, marking a substantial 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. However, Dogecoin and Cardano also have a notable presence, albeit with lower market shares, according to Cointree.
Gender Distribution of Cryptocurrency Users
Currently, there are more male cryptocurrency holders in Australia than female. However, the number of women entering the crypto space has been rapidly increasing. In 2021, the number of women involved in cryptocurrency more than doubled, indicating a trend towards greater gender balance in the industry. Nevertheless, only 31% of crypto owners in the country are women. This imbalance can be attributed, in part, to differences in financial risk tolerance between genders. Studies suggest that women are generally more risk-averse than men, which influences their investment choices, including cryptocurrencies.
Moreover, a significant portion of the Australian population remains skeptical about cryptocurrencies, with 43% of non-crypto owners perceiving them as too risky. This perception is stronger among non-crypto investors, with 32% preferring traditional investments over cryptocurrencies.
Popular Crypto Apps in Australia include Cointree, CoinSpot, and BTC Markets. These platforms offer user-friendly interfaces and a range of services, including trading, wallet services, and educational resources. Approximately 60% of Australian crypto owners use hot wallets, such as those provided by Cointree.
Regulatory Environment
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 focus on anti-money laundering (AML), counter-terrorism financing (CTF), and initial coin offerings (ICOs).
It is worth noting that cryptocurrencies have come under increasing scrutiny in Australia. In May of last year, cryptocurrency exchange Binance Australia informed customers that they would lose access to Australian dollar deposits and withdrawals due to a decision by their third-party service provider. In July, officials from ASIC even conducted searches at Binance Australia’s offices. In October, the Australian government unveiled a proposal to subject digital asset platforms to the same laws that govern other financial services providers. As part of the plan, crypto platform operators will be required to obtain a financial services license and undergo continuous monitoring and routine audits of customer funds.
In response to growing restrictions on crypto payments, Blockchain Australia, an industry body representing the Blockchain and digital currency industry in Australia, has launched new initiatives to combat crypto scams and frauds.
Australia Set to Approve 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 is reportedly developing a product for the ASX, while DigitalX and VanEck have also submitted their proposals. This move is anticipated to provide more institutional investors with exposure to Bitcoin, potentially increasing overall cryptocurrency investments in Australia.
It is worth mentioning that 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.
The Bottom Line
Australia’s cryptocurrency landscape has experienced significant growth, with the country ranking ninth globally in terms of crypto adoption. Approximately 17% of Australians own some form of cryptocurrency, surpassing the global average. This trend is driven by a young demographic, with many crypto investors being under the age of 24. The primary cryptocurrencies held are Bitcoin, Ethereum, and Binance Coin, while Dogecoin and Cardano also maintain a presence in the market. On the regulatory front, ASIC and AUSTRAC govern Australia’s cryptocurrency framework, with a focus on AML, CTF, and ICOs. Recent regulatory actions include increased scrutiny and operational restrictions for platforms like Binance Australia, as well as proactive measures by Blockchain Australia to combat crypto scams and frauds.
