The Australian cryptocurrency market is seeing increased adoption and regulatory progress, but significant hurdles remain. A new report shows crypto ownership among Australians rose to 31% in 2025, driven in part by self-managed retirement funds seeking diversification. While regulatory expertise is growing, industry executives highlight that banking access for crypto firms and legal uncertainties continue to pose challenges.
Cryptocurrency adoption in Australia reached 31% in 2025 according to a report from Independent Reserve, up from 28% the previous year. Nearly 29% of respondents stated they planned to invest in the asset class within the next 12 months.
Coinbase APAC managing director John O’Loghlen noted positive regulatory momentum within the country. “Multiple arms of government, mainly Treasury, who are writing the draft regulation and ASIC have thoroughly upskilled their teams,” he stated.
O’Loghlen also pointed to growing institutional access via exchange-traded funds and Coinbase Global’s inclusion in the S&P 500 index. This provides Australian institutions a means to access crypto-related stocks passively.
OKX Australia CEO Kate Cooper identified self-managed super funds (SMSFs) as a significant growth area. She noted a rise in new SMSFs being established specifically to invest in digital assets for portfolio diversification.
However, executives confirmed that banking barriers, or “debanking,” persist for crypto businesses in Australia. “It’s absolutely still a challenge in the industry,” Cooper said, noting no improvements had been made.
O’Loghlen called for solutions to debanking and stronger protection for blockchain payments innovation. “Regulatory settings must support innovation rather than inadvertently constrain it,” he added, cautioning against over-regulation.
The legal landscape remains uncertain pending an appeal in the case between ASIC and Block Earner. Australian crypto lawyer Bill Morgan suggested the change in government has also contributed to a legislative slowdown in the sector.
