Australia’s financial regulator is warning young investors to step back from social media and AI chatbots when making financial decisions, after a new survey found that 23% of Gen Z Australians now own cryptocurrency.
The Australian Securities and Investments Commission (ASIC) published the findings on Sunday, describing Gen Z’s reliance on “often unreliable sources” as a driver of riskier financial behavior.
The survey ran between November 28 and December 10 last year, covering 1,127 respondents aged 18 to 28. It found that 63% use social media for financial information, 30% use YouTube specifically, and 18% turn to AI platforms.
Trust levels were notable. 56% said they “somewhat or completely trust” financial content on social media. 52% said the same of “finfluencers” — influencers focused on finance or investment topics. AI ranked highest, with 64% of respondents trusting it as a financial source.
Crypto and the Influencer Problem
Of the 23% of Gen Z Australians who own crypto, 29% of those investors make trading decisions based on social media and influencer content. ASIC warned this exposes them to influencers who may “set unrealistic expectations” about returns, volatility, and long-term investing.
ASIC commissioner Alan Kirkland said the regulator has observed marketing activity that pushes people toward outright 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,” he said.
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Kirkland also pointed to Australia’s superannuation sector — a $4.5 trillion retirement fund market — as a specific target for unqualified influencers. “Super is often people’s most valuable asset, and that’s why disreputable people often target it,” he said.
The regulator acted on this front last June, issuing warning notices to 18 influencers suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice.
AI Tools Under the Microscope
Kirkland told the publication that ASIC is “watching very closely” what financial information AI tools are delivering to users. Under Australian law, any entity issuing personalized financial recommendations must hold a license.
“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,” Kirkland said.
Several crypto exchanges have already moved in this direction. MEXC, KuCoin, and Bitget have each integrated AI bots into their platforms to offer personalized trading guidance — the type of service the regulator says falls within its oversight.
ASIC‘s own framing of the problem, according to the announcement, is that Gen Z has a genuine appetite for trustworthy financial content but frequently ends up with sources “designed for engagement rather than accuracy.”
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial or investment advice.
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