ASIC Finds 23% of Gen Z Own Crypto, Fueled by Social Media
Australia's financial regulator has sounded the alarm over the investment habits of its youngest generation. A new survey from the Australian Securities and Investments Commission (ASIC) reveals that 23% of Gen Z individuals, aged 18 to 28, now hold cryptocurrency. The study, conducted in late 2025 with 1,127 respondents, exposes a heavy reliance on unverified digital channels for financial decision-making. A significant 63% of this cohort turn to social media for financial guidance, while 30% use YouTube specifically. More alarmingly, 29% of these young crypto investors admit to trading based on recommendations from social media and influencers.
The report underscores a high degree of trust in these unregulated sources. While 56% of Gen Z trust financial information on social media, trust in AI platforms is even higher at 64%. This trend has led to what ASIC describes as "riskier" financial decisions, including speculative trading. ASIC Commissioner Alan Kirkland noted that the volatility in crypto markets is often driven by forces that are impossible for an individual investor to understand, amplifying the risk of following promotional online content.
Regulator Targets Unlicensed AI and 'Finfluencer' Advice
In response to these findings, ASIC is intensifying its crackdown on unlicensed financial advice. The regulator explicitly warned that any AI tool or individual making personalized financial recommendations needs to be licensed. This puts numerous social media "finfluencers" and AI-driven platforms in the regulator's crosshairs. The move follows previous enforcement actions, including the issuance of warning notices to 18 influencers in June of last year for unlawfully promoting high-risk products.
ASIC's scrutiny extends beyond crypto to the country's $4.5 trillion superannuation (retirement fund) market, where unqualified influencers are also offering advice. The regulatory pressure highlights a key divergence in the application of artificial intelligence in finance. While consumer-facing chatbots on exchanges like KuCoin and MEXC face regulatory heat, AI is simultaneously being adopted as a professional tool to enhance compliance. Enterprise platforms like Faybl, which recently expanded to the US, are being used by licensed financial advisers to increase workflow efficiency by as much as 70%, demonstrating a clear distinction between regulated professional use and unregulated consumer-facing recommendations.
