Crypto16 March, 20263 min read
ASIC Warns Gen Z Over AI Finfluencers as Gen Z Owns 23% of Crypto
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Gen Z owns 23% of Australian cryptocurrency assets. ASIC warns against relying on AI finfluencers and social media for investments.
Gen Z Financial Behavior
ASIC has conducted a comprehensive survey of 1,127 Gen Z Australians aged 18-28, revealing significant financial behaviors and preferences among this demographic. The research shows that 63% of Gen Z relies on social media for financial information and guidance.
“The survey, which included respondents aged 18–28, found that 63% rely on social media for financial information and guidance, 18% use artificial intelligence (AI) platforms, and 30% turn to YouTube as a source for financial content.”
Additionally, 30% specifically turn to YouTube for financial content. These findings demonstrate how young Australians are increasingly turning away from traditional financial advice sources toward more accessible, technology-driven alternatives for managing their finances and investment decisions.
Trust Patterns
Trust levels among Gen Z vary significantly across different financial information sources, with AI platforms emerging as the most trusted medium. According to ASIC's research, 64% of Gen Z express trust in AI-enabled financial information, making it the most trusted source by a significant margin.
Social media financial content is trusted by 56% of respondents, while 52% trust finfluencers - social media personalities who cover finance and investment topics. This trust pattern suggests that while Gen Z actively engages with social media for financial information, they place even greater confidence in AI-generated content.
Crypto Ownership
Cryptocurrency ownership among Gen Z Australians has reached significant levels, with 23% of young Australians now owning digital assets. Among those who own crypto, 29% report making trading decisions based on content from social media or influencer posts.
“The study also shows a notable crypto footprint among Gen Z in Australia, with 23% reporting ownership of cryptocurrency. Among those who own crypto, 29% trade based on content from social media or influencer posts, a dynamic that prompted regulatory caution.”
This high rate of social media-influenced trading has raised regulatory concerns about the potential for unrealistic expectations about investment returns and market volatility. ASIC Commissioner Alan Kirkland has specifically warned that influencers may be setting inappropriate expectations about the realities of long-term investing.
Regulatory Warnings
ASIC has issued strong warnings about the risks posed by finfluencers and social media marketing in the financial sector. Commissioner Alan Kirkland has highlighted that some marketing activity on social media is specifically designed to drive investments toward high-risk products, with some campaigns actually encouraging people to invest in scams.
The regulator has already taken action by issuing warning notices to 18 influencers for unlawfully promoting high-risk financial products and providing unlicensed financial advice. Kirkland specifically emphasized that the volatility of crypto investments is not always understood by those advertising or encouraging participation.
AI Financial Advice
ASIC is paying particularly close attention to the emerging field of AI-powered financial advice and information services. Commissioner Kirkland has stated that the regulator is 'watching very closely' what types of financial information are being derived from AI tools, warning that licenses are required for any entity providing financial advice that represents concrete recommendations.
“Kirkland also told the AFR that ASIC is 'watching very closely' what types of financial information are being derived from AI tools. The commissioner warned that licenses are required for anything that gives out information representing concrete financial recommendations.”
Under Australian law, if an AI tool makes recommendations about individual financial products while taking into account individual circumstances, it would be considered personal advice and would require licensing. This concern comes amid a growing trend of crypto exchanges integrating AI bots into their services to offer personalized trading guidance.
Regulatory Priorities
ASIC's regulatory priorities for 2026 clearly indicate that crypto and AI firms exploiting licensing gray areas around payments will be a major focus for the Australian regulator. The commissioner's warnings reflect broader concerns about the intersection of emerging technologies and financial regulation.
The survey findings and regulatory response highlight the challenge of protecting young, inexperienced investors who may be particularly vulnerable to misleading marketing. As digital currencies and AI-powered financial tools continue to evolve, ASIC appears determined to establish clear boundaries and ensure that all entities providing financial services or advice operate within the regulatory framework.