Australia has announced new regulations for the cryptocurrency industry, bringing crypto exchanges under the same financial rules as other sectors.
Stricter Rules for Exchanges, Relief for Smaller Players
Crypto exchanges, brokerage firms, and custody providers will have to comply with asset protection rules, obtain an Australian Financial Services Licence, and meet minimum capital requirements. Smaller platforms and blockchain software developers won't be affected unless they exceed specific size thresholds. New rules for stablecoins treat them as stored-value facilities under payment reforms, with some being exempt from strict trading regulations.
Why is This Coming Now?
Australia has been working on crypto regulations since 2022, consulting industry experts to create a fair framework. With a federal election approaching, the timing is significant. The opposition Coalition Party, led by Peter Dutton, has also expressed support for crypto regulation, making this a key topic ahead of the elections.
What’s Next?
The draft legislation will soon be open for public feedback. In 2025, Australia will introduce an Enhanced Regulatory Sandbox, allowing businesses to test financial products without needing a license. There is also an ongoing review into a central bank digital currency (CBDC). Industry leaders like Caroline Bowler and Jonathon Miller support the initiative but stress the need for clarity on capital requirements. They believe clear rules will help Australia stay competitive in the global crypto market.
Australia's changes to crypto regulation aim to enhance consumer protection and address de-banking issues. With upcoming elections, the fate of these rules depends on the incoming administration.
