Australia proposes to tighten regulations on crypto exchanges and stablecoin issuers to protect consumers and maintain market integrity.
Legislative Change Plans
Australia's Treasury Department has released a policy paper detailing plans to incorporate the key elements of the digital asset sector into existing financial services laws. The changes aim to identify opportunities, manage risks, foster innovation, and protect consumers while maintaining market integrity.
Requirements for Platforms and Issuers
Under the proposed framework, crypto platforms holding digital assets on behalf of customers are required to obtain an Australian Financial Services Licence. This includes platforms dealing with tokenized stored-value facilities and stablecoin issuers, who must adhere to standards similar to those of other stored-value providers. However, entities involved in creating digital assets for non-financial purposes or maintaining blockchain infrastructure will be outside the regulations' scope.
Exemptions and Next Steps
Small-scale and early-stage platforms could be exempt from full licensing requirements, yet they may still need to comply with tailored regulatory standards to ensure basic compliance. Stablecoins used for payments will be subjected to oversight similar to traditional non-cash payment systems. Trading in these tokens on secondary markets will not automatically be considered a financial activity.
Discussion and development of the new legislative act are ongoing, and a draft law is expected in 2025. This shift underscores Australia's effort to adapt financial legislation to the challenges and opportunities of the digital age.
