Australia's government, led by the Labor Party, has proposed a new framework for regulating cryptocurrency exchanges. The initiative comes ahead of federal elections scheduled for May.
Proposed Changes in Crypto Exchange Regulation
Australia's Treasury Department announced plans to regulate crypto exchanges, custody services, and certain brokerage firms under the existing financial services laws. The new regime will require obtaining an Australian Financial Services Licence, complying with asset protection rules, and meeting minimum capital requirements.
Debanking Challenge Initiative
As part of its crypto agenda, Albanese's government aims to work with Australia's four largest banks to better understand the scope and nature of debanking. Additionally, there will be a review of central bank digital currency and an Enhanced Regulatory Sandbox in 2025.
Political Situation and Upcoming Elections
With a looming federal election, the date of which is yet to be called, there is potential for a change in government. The Coalition, led by Peter Dutton, previously stated their intention to prioritize crypto regulation if victorious.
The new regulatory system is a significant step forward for the cryptocurrency sector in Australia. The upcoming elections may shift the political landscape and approach to these initiatives.
