What is the state of the nation when it comes to cryptocurrency? In late June 2023, Koinly undertook a research study to find out. Koinly’s findings offer a valuable peek into Australia's crypto landscape, showcasing the growing influence of digital assets in modern financial strategies, and underscoring the need for improved awareness around crypto taxation.
A Deep Dive Into Australia's Crypto Landscape: Recent Findings Unveiled
Cryptocurrency and digital assets have quickly gained traction among Australians, and Koinly has conducted a round of research right at the start of the tax season, offering deeper insight into the crypto landscape, including the demographic makeup, financial brackets, tax obligations, and the popularity of Non-Fungible Tokens (NFTs).
Who's Holding the Digital Assets?
In Australia, approximately 31.6% of people hold or have held cryptocurrencies, confirming the steady integration of digital assets into the financial portfolios of everyday Aussies. It's even more notable among young adults aged 18-24, where women lead men in crypto ownership.
In terms of age, 57% of Australian crypto holders fall into the 25-44 age group, showing that it continues to be primarily young, and more tech-savvy investors that are fuelling the adoption of crypto.
The Family Structure of Crypto Investors
Our research reveals interesting patterns in the family structures of crypto investors. Individuals with a partner and their youngest child aged 3-12 form the largest group of crypto owners, followed closely by single individuals living alone.
How Much Are They Earning?
Income plays a significant role in investment capacity, with nearly half of crypto investors in Australia (49%) on annual earnings between $60,000 and $149,999 AUD. This paints a picture of crypto investment not as a game for the super-rich but as a financial strategy accessible to average-income individuals.
Tax Obligations and Crypto
Taxation is a crucial yet often misunderstood aspect of crypto investment. A surprising 50% of Australians are not aware that they're obliged to report their crypto holdings to the Australian Taxation Office (ATO). Of those who invest and hold crypto, 15.4% did not know that they are legally required to report these investments in their tax returns.
Moreover, of the crypto investors who have transactions to report (and are aware of this obligation), a shocking 80% of them - predominantly men - intend not to. This signals a need for clearer guidelines and educational efforts regarding crypto taxation.
The Crypto Investment Outlook
Despite the uncertainties and challenges the crypto space currently faces, the majority of Australian crypto investors surveyed believe that now is the best time to invest more in cryptocurrencies.
What about NFTs?
Our findings also touch on the ever-expanding world of NFTs. On average, Australian crypto investors who have bought NFTs own around 97 of them. However, every investor who has sold off any of their NFTs has done so at a loss, primarily for tax loss harvesting purposes.
Looking forward, more than 75% of NFT owners do not plan on selling their digital tokens in the next 12 months, and about half of those who have bought one would consider doing so again, primarily driven by the utility that NFTs provide.
These findings offer a valuable peek into Australia's crypto landscape, showcasing the growing influence of digital assets in modern financial strategies, underscoring the need for improved awareness around crypto taxation.
About the Findings
Koinly worked with global research agency Dynata to run the study. The survey sample size was n=1,000, distributed evenly across the national population according to statistics from the last Australian census. The study was anonymous and Koinly did not provide any incentive for completing the survey. A further 400 Australian’s were surveyed, drawing on Koinly’s user database. This cohort were asked the same questions as posed to non-users, however, this cohort were not asked to respond on questions related to tax compliance.
Download the research findings here.