TechFlow news, December 9 — According to Cointelegraph, a recent KPMG report reveals that Australia's fintech sector continued shrinking in 2024, with blockchain and cryptocurrency companies hit the hardest.
Data shows the number of independent fintech firms in the country has declined from 800 in 2022 to 767 currently. Blockchain and crypto businesses saw a 14% year-on-year drop, leaving only 74 operational firms. Among the 60 fintech companies that shut down this year, 4.5% ceased operations entirely, while 3% closed due to mergers and acquisitions.
KPMG noted that positive developments such as the U.S. approval of spot Bitcoin ETFs could potentially reverse this trend in 2025. Meanwhile, Australian financial regulators ASIC and anti-money laundering agency AUSTRAC are increasing oversight on the crypto industry.
