Australian Crypto Ownership Has Declined: Is There a Silver Lining?
Recent reports indicate a concerning trend: Australian crypto ownership has declined. According to the Australian Independent Reserve Cryptocurrency Index IRCI 2025, there has been a sharp decline in crypto ownership in the country. KPMG’s Australia Fintech reports that Australia’s blockchain and cryptocurrency sector faced a significant downturn in 2025, experiencing a 14% year-on-year decline. This drop has led to questions about the future of digital assets in Australia.
Finder.com.au reported that as of June 2025, about 27 per cent of Australians, around 5.6 million people, have owned or expressed interest in owning crypto. While significant, the decline from previous figures is undeniable. But within this apparent downturn, is there a silver lining?
One potential benefit lies in the push for increased regulation. Industry figures say cryptocurrency consumers and businesses have been left in the lurch by a lack of regulation. Caroline Malcolm, head of international public policy at crypto analytics firm Chainalysis, states that Australia is “really falling behind” its global peers on crypto regulation. This decline in ownership may spur the government to action, leading to a more stable and trustworthy environment for crypto investors.
Proposed guidance from the country’s corporate regulators may soon force crypto exchanges and firms dealing with digital assets in Australia to obtain costly licenses, addressing the concerns voiced by many. While ASIC says there are 400 registered crypto exchanges in Australia, the introduction of stricter licensing requirements could weed out less reputable players, ultimately protecting consumers.
The silver lining, therefore, could be a more mature and regulated crypto market in Australia. A decline in speculative investment might pave the way for more sustainable, long-term growth based on real-world utility and institutional adoption. While the current situation presents challenges, the potential for a stronger, more secure, and regulated future for crypto in Australia remains a distinct possibility.