Australia’s financial regulator has raised concerns after new data showed 23% of Gen Z investors in Australia now own crypto. The warning came from the Australian Securities and Investments Commission, or ASIC, which said young adults are increasingly using social media investing content and AI financial advice to make money decisions.
The regulator said this trend is exposing young people to unreliable information, higher risk, and possible scams. According to the study, 63% of Gen Z respondents use social media for financial information and guidance. In addition, 18% use AI platforms, while 30% use YouTube for the same purpose.
ASIC said trust in these channels is high. The survey found that 56% of respondents somewhat or completely trust financial information on social media. Also, 52% said they trust finfluencers, while 64% said they trust AI platforms. That made AI the most trusted source in the study.
ASIC warning highlights social media investing and Gen Z crypto ownership
The ASIC warning was based on a survey conducted between Nov. 28 and Dec. 10 last year. It included 1,127 respondents aged 18 to 28. The results showed that Australia Gen Z crypto ownership has become a major part of the broader discussion around online financial content.
Among Gen Z respondents who own crypto, 29% said they trade based on social media and influencer content. That number stood out because it linked Gen Z crypto ownership directly to online influence. As a result, ASIC said many young investors may be relying on content shaped more for engagement than for accuracy.
ASIC said many young people want trustworthy financial content, yet they often struggle to find it. Therefore, they end up using sources that look easy to understand but may leave out risk, volatility, or legal limits. In crypto, that matters because price swings can happen fast and without warning.
The regulator also said finfluencers may create unrealistic expectations about returns, long term investing, and market moves. In simple terms, ASIC is concerned that some online creators make risky financial products appear easier and safer than they really are.
Finfluencers and crypto scams Australia regulator is watching closely
The latest ASIC warning followed earlier regulatory action. In June last year, ASIC issued warning notices to 18 influencers suspected of unlawfully promoting high risk financial products and providing unlicensed financial advice.
Speaking to the Australian Financial Review, ASIC commissioner Alan Kirkland said the regulator has been tracking online marketing that pushes people toward crypto. He also said some of that activity leads people into scams. “We’re conscious that there’s a lot of marketing activity on social media to encourage crypto investment, and our work has shown some that is actually encouraging people to invest in scams,” Kirkland said.
Kirkland also pointed to crypto volatility. He said, “It’s really important for people to be aware of those risks, because you don’t see that same volatility in other types of investments and often that volatility is driven by forces that it’s impossible for an individual sitting in Australia to understand.”
ASIC also flagged superannuation, Australia’s retirement savings system. Kirkland said unqualified influencers are also giving advice in that area. Australia’s superannuation market is worth about $4.5 trillion. He said, “We see it most where people are lured in through social media ads and then encouraged to switch their super, because super is often people’s most valuable asset, and that’s why disreputable people often target it and why it can be so tragic if people are encouraged to put it into a risky investment.”
AI financial advice faces Australia crypto regulation pressure
AI financial advice is now another focus for Australia crypto regulation. Kirkland told the AFR that ASIC is “watching very closely” the type of financial information being produced by AI tools. The regulator is focused on whether those tools stay within legal limits or move into personal financial advice.
Under Australian law, a license is required if a person or platform gives financial advice that recommends specific products based on someone’s personal situation. Kirkland explained that point in direct terms. “It is clear under Australian law that if any entity is giving financial advice, they need to be licensed. So if an AI tool, whoever’s providing it, is actually making recommendations about individual financial products, taking into account individual circumstances, that would be personal advice, so it needs to be licensed,” he said.
That issue matters because some crypto exchanges have already added AI tools to their services. The report named MEXC, KuCoin, and Bitget as examples. These platforms offer AI bots that provide personalized trading guidance or act as trading partners.
Kirkland said one result stood out in the survey. “One of the most surprising findings from this research was the degree of trust young people are placing in AI platforms,” he said. He added that the value of AI-generated financial information depends on the question asked, how specific it is, and the quality of the sources behind the answer.
In late January, ASIC also said that crypto and AI firms exploiting licensing gray areas around payments in Australia would be one of its top priorities in 2026. That position now sits alongside the new survey data on Gen Z investors Australia, social media investing, and rising Australia Gen Z crypto ownership.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 16, 2026 • 🕓 Last updated: March 16, 2026
