Cryptos boom in Australia but many investors seek advice from YouTube. Could regulators step in?

Almost half of Australian retail buyers owned cryptocurrency in late 2021 and extra obtained their data from YouTube movies than from monetary advisers, the securities watchdog stated on Thursday, calling the information a "robust case for regulation".

The Australian Securities and Investments Fee (ASIC) survey of 1,053 retail buyers, carried out final November, discovered 44 per cent reported holding cryptocurrency, making it the second hottest funding after Australian shares.

1 / 4 of the buyers surveyed who held cryptocurrency stated it was their solely funding.

The information will add to strain on Australia's new Labor authorities to stress shopper safety because it takes over a years-long examine, began underneath the earlier conservative authorities, on whether or not and the best way to regulate the digital property.

It additionally legitimises extensively circulated statistics about excessive charges of Australian cryptocurrency possession which final yr have been dismissed as "implausible" by a high central financial institution official.

The survey additionally confirmed 41 per cent of respondents went to a social media outlet for funding data, with 20 per cent naming Alphabet Inc's Youtube and 11 per cent naming Meta Platforms' Fb.

Simply 13 per cent gained their data from a monetary adviser or dealer, based on the survey.

"We're involved concerning the variety of individuals surveyed who reported investing in unregulated, unstable crypto-asset merchandise," ASIC Chair Joe Longo stated in a press release.

"There are restricted protections for crypto-asset investments given they've develop into more and more mainstream and are closely marketed and promoted. There's a robust case for regulation of crypto-assets to higher shield buyers".

For the reason that survey, rate of interest hikes have spurred buyers to exit speculative property, sending cryptocurrencies' costs tumbling and sending some crypto-related companies into chapter 11.

The survey was carried out in the identical month bitcoin and ether, the 2 hottest cryptocurrencies, hit report highs. Each have slid about two-thirds since then, whereas the Australian inventory market is down about 6 per cent.