30s Summary

In 2024, over 7% of Australian fintech firms ceased trading, particularly blockchain and cryptocurrency businesses, according to KPMG. From 2022’s 800 firms, only 767 remained by 2024’s end, with 14% of those closing being blockchain and cryptocurrency companies. The dismantling of these businesses was partly due to increased interest in artificial intelligence, though the approval of Bitcoin exchange-traded funds could reverse this in 2025. However, Australian regulation delivered significant blows to crypto firms, with companies required to hold a financial license and crypto ATM operations subject to stringent scrutiny to combat money laundering.

Full Article

In 2024, more than 7% of fintech companies in Australia had to call it quits, with blockchain and cryptocurrency businesses going through rough times, according to a report by financial service company KPMG.

The number of independent fintech companies in Australia has been dropping for two years, going down from 800 in 2022 to 767 in all sectors by the end of 2024, says the KPMG report. Blockchain and crypto companies made up 14% of the 60 Australian fintech businesses that had to close their doors in 2024.

Blockchain and crypto businesses were hit the hardest in the Australian fintech scene in 2024, falling by 14%, with only 74 of these companies still active, the report noted.

In 2024, we saw the most significant damage to crypto businesses in Australia. Out of the 60 companies that closed, about 4.5% stopped operations, and 3% were swallowed up by other companies in deals, the report explained. The majority of these deals happened because the buying companies were trying to strengthen certain areas.

KPMG’s report also stated that the drop in the number of blockchain and crypto companies has a lot to do with the increased interest in artificial intelligence. However, recent events that favour cryptocurrencies, like the United States’ approval of Bitcoin exchange-traded funds, could turn things around in 2025, KPMG suggests.

The interest in alternative investments, encouraged by US rate cuts in the forthcoming months, may also stimulate the development of new crypto and blockchain companies next year.

On the other hand, crypto companies in Australia were dealt a severe blow by regulators. On December 4, the Australian Securities and Investment Commission put forward a plan for all crypto firms in Australia to hold a financial license.

Shortly after, on December 6, the Australian Transaction Reports and Analysis Centre, the country’s financial intelligence agency, announced they would be keeping a close eye on the crypto industry in 2025. It turns out that crypto ATMs have become hotspots for money laundering:
Crypto ATM operators in Australia are now required to register with the agency, monitor transactions, and check the customers’ IDs.