Australia’s crypto adoption stalls as confidence falls despite Labor’s push for regulation

Crypto adoption in Australia has stalled, despite the incumbent Albanian government rolling out some of the most ambitious digital asset reforms in the country’s history.

The fifth annual Australian crypto survey, released on Wednesday by crypto exchange Swyftx, found that ownership remains stable among adults, and trust in digital assets continues to decline.

Nearly 60% of Australians say they don’t trust crypto, up from 57% last year, according to data cited by the report. Among those who have never owned digital assets, the main barrier is the feeling that crypto still lacks clear rules.

“The promise of crypto regulation at some undefined point in the future is not as important to many investors as the actual implementation of those rules,” said Jason Titman, CEO of Swyftx. Decrypt.

But the reality is that crypto “is still seen by many people as an iconoclastic asset class,” which “is not necessarily an attractive trait for investors with a lower risk appetite,” Titman said.

According to the survey, Australians under the age of 35 remain the most active and profitable crypto investors in the country. Around 82% of Gen Z traders reported making a profit in the past year, with average gains of around $9,958.

Homeownership is highest among parents with children under 18, at 39%, compared to just 12% among non-parents. Meanwhile, only 6% of Australians aged 50 and over currently hold digital assets.

Swyftx estimates that at least 1.6 million more people will likely enter the digital asset market over the next year.

While there are reasons to be “excited about the future impact” of digital assets, most of the “mainstream messaging” around the asset class remains a caution against “scams and risks,” Titman said.

Filling the regulatory gap

Yet 2025 has seen a flurry of policy activity from the Labor government aimed at closing these gaps.

In March, Treasurer Jim Chalmers introduced a four-pillar reform plan this includes licensing for exchanges, a regulatory framework for stablecoins, a review of improvements to its regulatory sandbox, and more explicit tax guidance.

The government too promised engagement with major banks “to understand the extent of debanking,” which has led to restricted financial services for crypto companies.

This was followed by the Payment System Modernization Bill, which pass The Senate in early September expanded the definition of what constitutes a “payments system” to cover digital wallets and stored-value facilities such as stablecoin issuers.

Later that month, a bill was introduced to bring digital asset exchanges and custodians under the Australian financial services regime. This requires exchanges to obtain financial services licenses, segregate customer assets and follow stricter disclosure rules.

Earlier this month, Home Affairs Minister Tony Burke also proposed granting powers to AUSTRAC to restrict high-risk products such as crypto ATMs, citing ongoing concerns about scams and money laundering.

For now, investors are waiting for the rules to settle.

“Once the ink is dry on crypto laws, the narrative will change and the data is very clear: millions more Australians will invest in crypto when the asset class is regulated,” Titman said.