Australia Unveils Comprehensive Framework for Regulating Digital Assets

The Australian Treasury has released a plan for the development of cryptocurrency legislation in the country. This plan aims to establish a regulated ecosystem that balances innovation with consumer protection.

A draft bill will be presented for public discussion later this year.

This legislation will govern exchanges and crypto custodians under the current financial services laws. Companies are expected to be required to adhere to customer asset protection rules and minimum capital requirements, as well as to obtain an Australian Financial Services License (AFSL).

According to the Treasury’s statement, the reforms will not affect all participants in the digital economy. Smaller platforms, blockchain developers, and companies whose products are not classified as financial will be exempt from the new regulations.

Stablecoins will be regulated similarly to traditional systems, although certain «stable coins» and wrapped tokens will be exempt from taxation.

As part of the initiative, the government will collaborate with the four largest banks in Australia to explore the issue of de-banking crypto companies, which involves denying them services.

Additionally, there are plans for studies on Central Bank Digital Currencies (CBDCs) and the establishment of a regulatory sandbox where firms can test financial products without needing a license.

Federal elections, scheduled for May 17 or earlier, could impact the future of these reforms. The elections will feature the Labor Party, led by Prime Minister Anthony Albanese, against the opposition coalition headed by Peter Dutton.

The opposition coalition has already stated its intention to prioritize the regulation of the crypto industry if it wins.

Caroline Bowler, CEO of BTC Markets, mentioned to Cointelegraph that the proposed reforms could help Australia maintain its competitiveness on the global stage. However, she urged clarification regarding capitalization and custodial requirements to ensure they do not hinder investments.

Jonathan Miller, Managing Director of Kraken Australia, emphasized that there is an urgent need for new legislation due to legal uncertainties and de-banking that are stifling industry growth in the country.

It is worth noting that in December 2024, the Australian Securities and Investments Commission (ASIC) accused Binance of violating consumer rights, stating that this led to significant losses from risky derivatives.