Australian crypto exchange Swyftx published a new study survey on Monday showing that around one million Australians will buy crypto for the first time in the next 12 months.

The new survey surveyed 2,609 Australians over the age of 18 in early July, with 548 participants in the survey sample identified as current cryptocurrency holders.

The research revealed that despite the current “crypto winter,” Australian crypto ownership has grown by 4% year-on-year (YoY), reaching 21% this year. This figure will increase by another million new cryptocurrency owners in 2023, according to the survey.

The result could bring the total crypto ownership in the country to more than five million.

While at least a quarter of Australians plan to buy cryptocurrencies in the next 12 months, the study revealed that Millennials, Gen Zers, Australian parents and those who work full-time are more likely to buy the digital assets.

Swyftx Head of Strategic Partnerships Tommy Honan commented on the development: “Based on current growth trajectories in digital asset usage, we expect half of adults under the age of 50 in Australia to own or have owned digital assets. cryptocurrencies in the next year. two years.”

However, Honan said the adoption rate could decline over the next 12 months before picking up again as market conditions improve.

The survey revealed that while the bear market brought down user confidence, it identified a lack of strong regulation, general market volatility, and a lack of knowledge about how crypto works as the main factors discouraging users from buying. invest in crypto, especially those who have not yet.

Swyftx Co-CEO Ryan Parsons said the report indicates there is a clear demand among Australians to buy and use cryptocurrencies. Still, user hesitancy is due to issues associated with regulation. The comment is reinforced by former Credit Suisse chief risk officer CK Zheng who believes the next crypto bull run will be the result of “regulatory clarity” in the US.

Local regulators taking note

The use of crypto and non-cash payments has skyrocketed in Australia during the Covid-19 pandemic as consumers’ lives have shifted online. According to government data, as of December 2021, the number of Australians transacting in cryptocurrencies increased by 63% during that year compared to the previous year. Australians are identified as being among the most enthusiastic adopters of cryptocurrencies, with around 20% owning them, compared to a global average of 11.4%.

With that rapid digital revolution underway, the country’s regulation is struggling to keep up and adapt to the crypto industry. The crypto industry is largely unregulated, and the government is currently trying to do something to strike the right balance for adopting new and innovative technologies and protecting consumers.

This comes amid growing concerns from government regulators such as the Australian Securities and Investments Commission (ASIC) over the number of scams involving cryptocurrencies, and the influence of social media in the industry has been on the rise. Last month, the Australian Prudential Regulation Authority (APRA) released reports warning of the scale and management of risks related to crypto assets.

Last month, the Australian Treasury announced a multi-step plan to establish a crypto regulatory framework that is intended to be more comprehensive and better informed than those previously established anywhere else in the world.

The key to the government’s approach is to develop market research called “token mapping.” Token mapping will allow officials to view and assess trends in Australian crypto markets to better identify how regulators should regulate crypto assets and related services.

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