Things do not appear to be going so well for the Fintech industry in Australia. In a recent report by major consulting firm KPMG, the crypto industry in Australia has shrunk considerably. This is not a positive outlook for the crypto market in the country.

Content of crypto report KPMG

KPMG mapped the Fintech landscape in a recent report and came up with a number of conclusions. The crypto and blockchain sector is a large part of the fintech sector in Australia. More than 7% of fintech companies headquartered in Australia closed in 2024, in this they were mostly crypto companies.

The report revealed that investment in digital currency and blockchain technology has fallen sharply. According to KPMG, global economic uncertainties and stricter regulations play a major role in this decline. The report wrote: ”The blockchain and cryptocurrencies environment was hit hardest in the fintech landscape, with a 14% year-on-year decline with 74 active companies as of 2024.”

According to KPMG’ s Australia Fintech Landscape 2024 report, the number of independent fintech companies in Australia has fallen sharply over the past two years. There were still 800 companies in 2022, but by Dec. 9, 2024, there were only 767. KPMG also reports that about 4.5% of the 60 companies have ceased operations, while 3% have been acquired through mergers and acquisitions (M&A).

Brighter outlook

Still, the report is not entirely negative and also sees opportunities for a brighter future for the market in Australia. For example, there are opportunities in this country mainly by collaborating with other countries and investing in new technologies such as DeFi and AI. These technologies offer many opportunities and can attract new investors, according to the report.

To do so, however, companies would have to be flexible and better at dealing with regulations and laws so that companies can adapt to changes in the market.