The Australian government has unveiled a draft of new regulatory measures for cryptocurrencies that will align them with existing financial services laws.
New Regulatory Approach
The proposed changes, presented ahead of the federal election, involve exchanges, custodial services, and brokerage firms handling cryptocurrencies. These entities will be subject to the same requirements as other financial services in the country, including client asset protection, mandatory financial services licenses, and minimum capital requirements. Small platforms and companies not dealing with financial products will be exempt from the new rules.
Industry Reaction
The proposed reforms have been met with positive reactions from some industry representatives. Caroline Bowler, CEO of BTC Markets, stated that the areas of reform are sensible and will keep Australia competitive globally, though more clarity on capital and custody requirements is needed. Kraken Australia's managing director Jonathon Miller highlighted the urgent need for specific cryptocurrency legislation to address the current industry uncertainty.
Future Prospects for Cryptocurrencies in Australia
The Albanese government also plans to work with Australia's largest banks to address the issue of banking denial and conduct a review of central bank digital currency in 2025. Draft legislation for public consultation is expected. However, potential changes in government due to the upcoming federal election could influence the outcome of these proposals.
Australia's new government proposals for cryptocurrency regulation aim to acknowledge their importance and adapt legislation to modern digital realities.
