The Australian Securities and Investments Commission (ASIC) survey of 1,053 retail investors found that 44% reported holding cryptocurrency.
The Australian Securities and Investments Commission (ASIC) survey of 1,053 retail investors found that 44% reported holding cryptocurrency.
Nearly half of Australian retail investors owned cryptocurrencies at the end of 2021 and drew more information from YouTube videos than financial advisors, with the securities watchdog calling the data a “strong case for regulation” on Thursday.
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In an Australian Securities and Investments Commission (ASIC) survey of 1,053 retail investors conducted last November, 44% reported holding a cryptocurrency, making it the second most popular investment after Australian stocks.
A quarter of investors holding cryptocurrency said it was their only investment.
The data will add to pressure on Australia’s new Labor government to push for consumer protection as it follows a more than a year study, launched under the previous Conservative government, on whether and how digital assets should be regulated .
It also legitimizes widely circulated statistics about High rate of Australian cryptocurrency ownership Which was dismissed as “impossible” by a top central bank official last year.
The survey also showed that 41% of respondents used social media outlets for investment information, with 20% naming Alphabet Inc’s YouTube and 11% naming Facebook of meta platforms.
According to the survey, only 13% got their information from a financial advisor or broker.
“We are concerned about the number of people who reported investing in unregulated, volatile crypto-asset products,” ASIC President Joe Longo said in a statement.
“There is limited protection for crypto-asset investments, as they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.”
Since the survey, rising interest rates have prompted investors to exit speculative assets, plunging cryptocurrencies prices and sending some crypto-related businesses into bankruptcy.
The survey was conducted in the same month that Bitcoin and Ether, the two most popular cryptocurrencies, hit record highs. Both have since lost nearly two-thirds, while the Australian stock market is down about 6%.