ASIC Warns Gen Z: Social Media Is Driving Riskier Crypto Decisions

Australia's corporate regulator has published research showing that young Australians are making increasingly speculative cryptocurrency decisions based on social media content and influencer recommendations, often without verifying the accuracy of what they're seeing. The findings carry direct implications for how Gen Z investors approach not just their trading strategy but also their tax obligations when those trades generate gains or losses.

What the ASIC Research Found

ASIC commissioned YouGov to survey 1,127 Australians aged 18 to 28, conducted online between 28 November and 10 December 2025. The results paint a clear picture of a generation that wants credible financial information but is routinely finding the opposite.

Social media dominates how Gen Z learns about money

Nearly two thirds of respondents (63%) said they turn to social media for financial information and guidance. YouTube is used by 30%, and 18% rely on AI platforms for financial input. Trust levels are striking: 56% said they somewhat or completely trust financial information on social media, 52% trust so-called finfluencers, and 64% trust AI platforms.

That last figure is particularly notable. AI tools can surface plausible-sounding information quickly, but ASIC is clear that this content can be incomplete, promotional, or outright misleading. The regulator's concern isn't that young Australians are curious about investing. It's that the sources shaping their decisions aren't built for accuracy. They're built for engagement.

One in four Gen Z Australians already holds crypto

Twenty-three percent of Gen Z respondents own cryptocurrency. Of those, 66% take a short-term or speculative approach to at least some of their holdings. Twenty-nine percent said they trade based on social media or influencer content. A quarter (24%) try to pick winners by buying the latest new coins, and 15% describe their approach as investing just for a punt.

These aren't just behavioural risks. Every one of those trades is a potential taxable event in Australia. If you're buying and selling crypto based on what's trending on a social feed, you may be accumulating a tax liability you haven't accounted for.

The Crypto Tax Reality Gen Z Needs to Know

ASIC's research focuses on investment behaviour and risk, but the tax dimension is just as important for young Australian investors to understand. In Australia, cryptocurrency is treated as property by the Australian Taxation Office. That means disposing of crypto (whether by selling it, swapping it for another token, or spending it) is generally a capital gains tax event.

Short-term speculation creates a higher tax rate

If you hold a crypto asset for less than 12 months before disposing of it, the full capital gain is added to your assessable income and taxed at your marginal rate. If you hold for 12 months or more, you may be eligible for the 50% CGT discount. For Gen Z investors taking a short-term or speculative approach (which, per the ASIC data, describes the majority of crypto-holding Gen Zers), the tax outcome of frequent trading can be materially worse than a longer-term strategy.

This is precisely the kind of nuance that influencer content rarely covers. A tip to buy a trending token doesn't come with a tax modelling note. That's where a reliable crypto tax calculator becomes practical, not optional.

Record-keeping is your responsibility

The ATO expects you to keep records of every crypto transaction: the date, the value in Australian dollars at the time, the nature of the transaction, and any associated costs. If you've been trading across multiple exchanges or wallets, possibly triggered by social media tips, reconstructing that history later is significantly harder than maintaining it in real time. A crypto tax report isn't something you should be trying to build from memory at the end of the financial year.

Why ASIC Is Drawing Attention to This Now

ASIC isn't just publishing a warning for the sake of it. The regulator has pointed to specific structural problems in the way financial content reaches young Australians online.

Algorithms reward engagement, not accuracy

Social media platforms surface content based on what drives clicks and views, not what is correct or suitable for a given person's circumstances. Financial information delivered through these channels is rarely tailored to individual situations. A video explaining why a particular crypto token is about to moon is not financial advice, but it can easily be mistaken for informed analysis by someone who is newer to investing.

ASIC notes that almost three quarters of Gen Z (72%) have seen social media advertising encouraging them to invest in crypto assets in the past 12 months. Two in five (41%) have been directly contacted by someone offering to help them invest in crypto. That second figure is a significant red flag: unsolicited investment offers are a recognised vector for crypto scams.

The sense-check ASIC is recommending

The regulator's practical ask is straightforward: before acting on financial information seen online, pause, verify the claim against a reputable source, and consider whether the person or platform sharing it has a commercial interest in you acting on it. ASIC specifically directs young Australians to Moneysmart, the government's free financial guidance service, which covers investing, superannuation, budgeting, and scam awareness.

Sixty percent of Gen Z respondents said they do use formal or professional sources alongside social media. That's a meaningful base to build on. But the data suggests it's not enough to balance the volume and persuasiveness of promotional content in social feeds.

What This Means If You're Filing a Crypto Tax Return

If you've been active in crypto this financial year, driven at least partly by what you've seen online, you'll need to account for every disposal when you file. That means calculating your cost base, identifying your capital gains and losses, applying the CGT discount where you're eligible, and reporting everything correctly to the ATO.

This can get complicated fast, especially if you've used multiple exchanges, received airdrops, or participated in DeFi protocols. Using a crypto tax calculator to generate an accurate crypto tax report before lodging is the practical starting point. You'll want to calculate crypto taxes across your full transaction history, not just the trades that were profitable.

It's also worth considering whether any losses from speculative trades can be used to offset gains elsewhere in your portfolio. Capital losses on crypto can be carried forward and applied against future capital gains if they exceed your gains in the current year. A qualified tax professional familiar with how to file crypto taxes in Australia can help you make the most of your position, rather than simply paying whatever figure appears on the surface.

ASIC's research is a useful reminder that the information environment around crypto investing in Australia is noisy, commercially motivated, and often unsuitable as a basis for financial decisions. That's true whether you're 22 and trading on a finfluencer's tip, or 35 and following a trending coin on social media. The tax rules don't change based on where you heard about the trade.

Frequently Asked Questions

Does every crypto trade trigger a tax event in Australia?

Generally yes. The ATO treats cryptocurrency as property, so disposing of it (selling, swapping, or spending) is typically a capital gains tax event. You'll need to report gains and losses on your tax return for the year the disposal occurred.

I traded based on a social media tip and lost money. Can I claim that loss?

Capital losses from crypto can usually be offset against capital gains you make in the same year, or carried forward to future years. You can't deduct them against ordinary income. Keep records of the original cost base and the disposal price to support your claim.

How long do I need to hold crypto to get the 50% CGT discount?

At least 12 months from the date of acquisition to the date of disposal, for Australian resident individuals. If you're trading frequently on short-term signals, you're unlikely to qualify for the discount on most of those trades.

What records do I need to keep for crypto tax in Australia?

The ATO expects you to retain the date of each transaction, the value in Australian dollars at the time, the type of transaction, and the fees paid. Exchange records, wallet addresses, and blockchain transaction IDs are all relevant. You should keep these for at least five years.

Where can I get reliable, free financial guidance in Australia?

ASIC's Moneysmart website offers free, independent information on investing, superannuation, budgeting, and scam avoidance. For tax-specific questions, the ATO's website includes detailed guidance on crypto asset tax treatment, and a registered tax agent can provide advice tailored to your circumstances.

Source: Australian Securities and Investments Commission (ASIC)