Australia Takes Major Step Toward Regulating Digital Assets
Australia is moving closer to regulating digital assets with the government’s introduction of new draft laws aimed at bringing crypto platforms under financial regulation—a move many view as long overdue. While the industry welcomes this direction, stakeholders are calling for clearer rules before the legislation advances.
Bringing Crypto Under Financial Rules
The proposed law would require digital-asset platforms to obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC), aligning their oversight more closely with banks and traditional financial institutions.
The draft legislation introduces two new categories: digital asset platforms and tokenized custody platforms. To ease the regulatory burden on smaller players, platforms processing less than $6.5 million in annual transactions or holding under $3,300 in customer deposits will be exempt from licensing requirements.
Penalties for non-compliance are significant, with fines reaching up to A$16.5 million or 10% of annual turnover, underscoring the government’s commitment to stricter oversight.
Industry Applauds Move but Calls for Clarity
Australia’s crypto industry has largely responded positively to the draft laws. Kate Cooper, CEO of OKX Australia, praised the move, stating the laws mark crypto’s integration into the mainstream financial system, though she emphasized that effective implementation will be crucial.
Liam Hennessy, partner at Thomson Geer, described the approach as “fair,” noting it strikes a balance by avoiding the overly strict rules seen in Europe and the complex regulatory environment of the United States.
However, concerns remain. Caroline Bowler, former CEO of BTC Markets, commented, “The draft legislation, as it stands, leaves some critical questions unanswered. Structure must come with clarity.”
Consultation Period Ends, Industry Awaits Next Steps
The public consultation period for the draft laws closed on October 24, with submissions now under government review.
Vakul Talwar of Crypto.com urged the government to proceed swiftly, predicting that legislation could be enacted as early as March 2026. Conversely, Edward Carroll of MHC Digital expects the process might extend until the end of that year.
Australia’s Crypto Scene Continues to Grow
Despite regulatory developments, crypto adoption in Australia is on the rise. The a16z State of Crypto 2025 report reveals that 31% of Australians now use crypto, up from 28% last year.
Stablecoins alone processed $46 trillion in transactions over the past year—comparable to giants like Visa and PayPal. Moreover, global institutions such as BlackRock, Visa, and JPMorgan are expanding their crypto service offerings, signaling strong momentum in the sector.
Australia’s evolving regulatory framework, coupled with increasing adoption, positions the country as a significant player in the global digital asset landscape.
https://coinpedia.org/news/crypto-industry-backs-australias-draft-law-warns-of-vague-rules/
