rewrite this title Crypto Adoption in Australia Stalls as Trust Drops Despite Labor’s Push for Regulation – Decrypt

Crypto adoption in Australia has stalled, despite the incumbent Albanese 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 flat among adults, with trust in digital assets continuing to slide.

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 key barrier is the sense that crypto still lacks clear rules.



“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,” Jason Titman, CEO of Swyftx, told Decrypt.

But the reality is that crypto “is still seen by many people as an iconoclastic asset class,” one that “isn’t necessarily an appealing trait to investors with lower risk appetites,” Titman said.

Australians under 35 remain the country’s most active and profitable crypto investors, per the survey. About 82% of Gen Z traders reported earning profits over the past year, with average gains of around $9,958.

Ownership 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 above currently hold any digital assets. 

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

While there’s reason to be “excited about the future impact” of digital assets, most of the “mainstream messaging” around this asset class remains cautionary on “scams and risk,” Titman said.

Closing the regulatory gap

Still, 2025 has seen a wave of policy activity from the Labor government aiming to close such gaps.

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

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

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

Later that month, a draft law was introduced to bring digital-asset exchanges and custodians under Australia’s financial-services regime. It requires exchanges to get financial services licenses, keep customer assets separate, and follow stricter disclosure rules.

Earlier this month, Home Affairs Minister Tony Burke also proposed granting AUSTRAC powers 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 set in.

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