Australia may soon implement stricter licensing requirements for crypto exchanges and stablecoin issuers as part of a new regulatory reform.
New Regulation for Digital Assets
On March 20, the Australian Treasury released a new policy paper aimed at regulating key segments of the digital asset industry under existing financial laws. The new rules will affect platforms that hold digital assets for customers, such as exchanges, custodians, and certain brokerages, which will need to operate under an Australian Financial Services License. Stablecoin issuers will also be subject to new requirements, including rules for redeeming and safeguarding customer assets. However, companies creating digital assets for non-financial purposes will not be regulated.
De-banking Issue in Australia
The Australian government is also focusing on the growing issue of de-banking, where crypto companies are denied banking services. In recent years, banks like Commonwealth Bank, Westpac, NAB, and HSBC Australia have restricted services for such companies. Regulators are working with the country's major banks to understand the extent of the issue and develop solutions to enhance trust between banks and crypto companies.
Future Prospects and Developments
Looking forward, regulators are considering how tokenization could transform asset markets, evaluating crypto tax reporting standards, monitoring DeFi developments, and exploring the potential benefits of a central bank digital currency for Australia's financial system. A draft law is expected in 2025, with implementation dates to be confirmed after finalizing the legislation.
The new regulatory framework aims to enhance risk management and transparency in Australia's digital assets sector, with a strong focus on consumer protection and market integrity.
