tl;dr
Australia's crypto adoption stalls despite government reforms as regulatory uncertainty fuels distrust, according to a new survey. Younger investors drive engagement, but clear rules remain critical for mainstream acceptance.
**Australia’s Crypto Adoption Stalls Amid Regulatory Uncertainty, Despite Ambitious Reforms**
Despite the Albanese government’s efforts to implement some of the most ambitious digital asset reforms in Australia’s history, crypto adoption has stalled, according to the fifth annual Australian Crypto Survey by Swyftx. The report reveals a persistent lack of trust in digital assets and a growing demand for clear regulatory frameworks, even as younger Australians continue to drive engagement in the market.
**Trust Slides as Regulation Lags**
The survey found that 59% of Australians do not trust cryptocurrencies, a rise from 57% in the previous year. For those who have never owned digital assets, the primary barrier remains the perception that the sector lacks clear rules. Jason Titman, CEO of Swyftx, emphasized that investors are no longer satisfied with vague promises of future regulation. “The promise of crypto regulation at some undefined point in the future is not as important to a lot of investors as the actual delivery of those rules,” he said.
Crypto is still viewed by many as an “iconoclastic asset class,” which deters risk-averse investors. However, younger demographics, particularly Gen Z, remain the most active. About 82% of Gen Z traders reported profits in the past year, with average gains of $9,958. Ownership is highest among parents with children under 18 (39%) compared to just 12% among non-parents, while only 6% of Australians aged 50 and above hold digital assets.
**Government Moves to Close Regulatory Gaps**
In 2025, the Labor government has introduced a series of measures aimed at modernizing the crypto landscape. Treasurer Jim Chalmers unveiled a four-pillar reform blueprint, including licensing for exchanges, a regulatory framework for stablecoins, and enhanced oversight of the regulatory sandbox. The Payments System Modernization Bill, passed in September, expanded the definition of “payment systems” to include digital wallets and stablecoin issuers. A draft law also seeks to bring digital-asset exchanges and custodians under Australia’s financial-services regime, requiring licenses, segregated customer assets, and stricter disclosures.
Home Affairs Minister Tony Burke recently proposed granting AUSTRAC authority to restrict high-risk crypto products, such as ATMs, citing concerns over scams and money laundering. However, these measures are still in development, leaving the industry in a state of limbo.
**A Wait-and-See Approach**
While the government’s initiatives signal progress, investors remain cautious. Titman noted that mainstream messaging around crypto continues to focus on risks like scams, which overshadows its potential. “Once the ink is dry on crypto laws, the narrative will shift,” he said. Swyftx estimates that 1.6 million more Australians could enter the market within the next year if regulations are finalized.
**The Road Ahead**
The survey underscores a pivotal moment for Australia’s crypto sector. While younger, tech-savvy investors are driving growth, broader adoption hinges on resolving regulatory ambiguity. As the government finalizes its reforms, the hope is that clearer rules will transform crypto from a niche, risky asset into a trusted part of the financial ecosystem—unlocking its potential for millions of Australians.
For now, the industry waits, balancing skepticism with anticipation as the path forward takes shape.