2024

Thomas

Bitcoin

Australia fintech landscape has experienced a major shake-up in 2024, with more than 7% of fintech companies shutting down, according to a recent KPMG study. The blockchain and cryptocurrency sector has been the hardest hit, marking a stark decline in the number of active firms. The <a href="https://kpmg.com/au/en/home/insights/2024/12/australian-fintech-landscape.html">findings</a>, as part of KPMG’s Australia Fintech Landscape 2024 report, reveal that the number of independent fintech firms in the country has dropped from 800 in 2022 to just 767 in December 2024. 
<h2 id="span-style-font-weight-400-australia-fintech-sector-sees-a-major-decline-span">Australia fintech sector sees a major decline</h2> 
The study highlights that a considerable portion of the closures can be attributed to the blockchain and crypto sector, with 14% of the 60 Australian fintech firms that shut down this year falling into this category. 
Specifically, the number of active blockchain and cryptocurrency firms has dropped by 14% year-over-year, with only 74 companies remaining. The KPMG report attributes much of this decline to the sector’s struggle to compete against the growing interest in artificial intelligence, which has become a more prominent focus for many fintech firms. 
The <a href="https://thecoinrise.com/the-advisory-committee-in-australia-proposes-several-steps-to-boost-crypto-adoption/">overall fintech contraction in Australia</a> also reflects a broader trend of mergers and acquisitions (M&amp;A) in the market. Around 3% of firms closed their doors due to M&amp;A activity, with strategic purchases aimed at strengthening certain capabilities. However, KPMG suggests that despite the challenges, the blockchain and cryptocurrency industries may have a chance to rebound in 2025. This potential recovery could be fueled by global events like the approval of Bitcoin ETFs in the U.S., alongside anticipated U.S. interest rate cuts, which could spark a renewed interest in alternative investments and provide a much-needed boost to the sector. 
<h2 id="span-style-font-weight-400-government-s-growing-focus-on-crypto-regulation-span">Government’s Growing Focus on Crypto Regulation</h2> 
The <a href="https://thecoinrise.com/australia-launches-task-force-to-tackle-crypto-atm-non-compliance/">Australian regulatory environment is also becoming more stringen</a>t, adding pressure to an already struggling market. In early December, the Australian Securities and Investments Commission (ASIC) proposed a sweeping financial licensing regime for cryptocurrency firms. The consultation paper, issued on December 4, suggests that nearly all crypto businesses in Australia may soon need to adhere to stricter financial regulations. 
Furthermore, Australia’s national financial intelligence agency, AUSTRAC, has announced plans to focus its efforts on the cryptocurrency industry in 2025. AUSTRAC CEO Brendan Thomas emphasized that crypto ATMs have become a major concern for money laundering, and the agency intends to clamp down on illegal activities within the sector. 
While these regulatory changes might pose additional challenges for crypto firms, they could also help bring about a more secure and transparent operating environment. 
The post <a href="https://thecoinrise.com/fintech-faces-struggles-in-australia-crypto-firms-hit-hardest-in-2024/">Fintech Faces Struggles in Australia, Crypto Firms Hit Hardest in 2024</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

Fintech Faces Struggles in Australia, Crypto Firms Hit Hardest in 2024

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