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The Australian Securities and Investments Commission (ASIC) has released research showing that 23% of Generation Z Australians now hold cryptocurrency, with 63% relying on social media and 64% trusting artificial intelligence tools to research investments.
The findings alarm regulators, who warn that young investors increasingly receive financial guidance from unqualified social media influencers and AI platforms rather than licensed advisors—exposing inexperienced traders to volatile markets, scams, and misleading advice.
ASIC Commissioner Alan Kirkland emphasized that crypto represents a ‘fundamentally different type of investment’ with far greater risks than traditional securities.
The findings shows a growing shift in investment behavior among younger consumers who increasingly rely on digital sources.
According to the survey, 63% of Gen Z respondents use social media to research investments, while 64% say they trust AI-powered tools such as chatbots to help manage their finances.
ASIC officials say the trend could expose inexperienced investors to volatile markets, scams and misleading advice.
“We don’t know exactly why crypto has overtaken shares among young investors, but the key message is that it is a fundamentally different type of investment.”
Alan Kirkland, Commissioner, Australian Securities and Investments Commission, in comments reported by media outlets.
The regulator emphasized that crypto markets can be significantly more volatile than traditional investments and often lack the same consumer protections.
Financial influencers, commonly known as “finfluencers” have become a major gateway into investing for younger audiences.
These influencers share trading strategies, crypto tips and market predictions on platforms such as TikTok, Instagram and YouTube.
Research suggests that about 28% of Gen Z follow financial influencers, and some admit they have acted directly on advice posted online.
But regulators say the line between education and unlicensed financial advice is often blurred.
“Popularity doesn’t equal credibility. Consumers should check whether the person giving financial guidance is licensed or authorized.”
Kirkland warned in an earlier regulatory statement.
ASIC has already taken enforcement actions against several influencers suspected of promoting high-risk products without proper authorization.
In a coordinated international crackdown with regulators from the UK, Canada and other countries.
AI tools are adding another layer to the trend. Young investors increasingly use generative AI platforms to analyze markets, summarize crypto news or generate trading ideas.
While the tools can help simplify complex topics, regulators say they can also produce inaccurate or overly confident financial recommendations.
The warnings come as regulators worldwide step up efforts to combat crypto-related scams and misleading promotions.
ASIC says it has removed thousands of fraudulent investment websites and hundreds of cryptocurrency scams in recent years.
AI-generated advertisements and deepfake videos have made scams more convincing, allowing fraudsters to impersonate celebrities or financial experts.
Regulators argue that inexperienced investors, particularly those entering the market through viral social media content are especially vulnerable.
Industry observers say the trend highlights a broader generational shift in how people learn about finance.
Younger investors prefer fast, accessible information through digital platforms rather than traditional financial advisors or lengthy research reports.
But experts caution that relying solely on viral content or automated tools can lead to risky decisions.
“Gen Z is highly motivated to learn about money but often feels overwhelmed by financial complexity.”
Warren Day, CEO of the Australian Securities and Investments Commission, in a previous statement on youth financial literacy initiatives.
On one hand, rising adoption among younger demographics signals a long-term expansion of the digital asset market.
As Gen Z enters the workforce and accumulates wealth, their investment preferences could reshape the financial landscape.
On the other hand, heavy reliance on social media and algorithm-driven advice could amplify market volatility and expose inexperienced traders to scams.
Regulators are therefore urging investors to verify sources, understand risk profiles and consult credible financial information before making investment decisions.
As crypto markets continue to mature, the challenge for policymakers and industry leaders alike will be finding a balance between encouraging innovation and protecting a new generation of investors entering the digital economy.
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