Key Takeaways
- Crypto exchanges in Australia will now be required to obtain a financial services license under newly proposed regulations.
- Non-compliant platforms face fines of up to $16.5 million or 10% of annual turnover.
- Major players like Coinbase and CloudTech Group have welcomed the reform.
Australia’s newly proposed crypto regulation could see digital asset platforms hit with fines of up to $16.5 million for companies that fail to comply.
The new regulation would bring crypto exchanges under the Corporations Act by introducing two new financial product categories, digital asset platforms and tokenized custody platforms.
Australia’s New Crypto Regulations
Under the new plan, providers will be required to obtain an Australian financial services licence and demonstrate that they operate “efficiently, honestly and fairly,” according to Bloomberg.
The rules also enforce a ban on misleading conduct and unfair contracts, while mandating stronger transparency for both consumers.
Severe sanctions have also been proposed for non-compliance, as platforms could now face fines of up to $16.5 million or up to 10% of annual turnover.
However, smaller operators will be exempt if they hold less than $5,000 per customer or process under $10 million in transactions annually.
The government said this mirrors exemptions for traditional financial products.
Assistant Treasurer Daniel Mulino said the proposed regime is designed to weed out bad actors while supporting legitimate businesses.
“This is about giving businesses certainty and consumers confidence,” he said.
“The final legislation will introduce a new framework for digital asset businesses in Australia.”
The exposure draft is open for consultation until 24 October, after which the government will refine the bill.
Assistant Minister for the Digital Economy Andrew Charlton claimed the regulation would aid Australia in becoming “a world leader in digital assets.”
Industry Reaction
The move has been broadly welcomed by exchanges and blockchain firms.
Coinbase’s Asia-Pacific managing director, John O’Loghlen, called the bill a “meaningful step” that could boost trust and growth.
“Clear, fit-for-purpose regulation will support economic growth, increase choice for consumers, and ensure Australia remains competitive globally,” he said.
Meanwhile, Many Jiang of CloudTech Group described the proposal as a “defining” moment for the sector, which she said has long been “constrained by regulatory uncertainty.”
Jiang argued that mainstream adoption and institutional investment would accelerate under a clearer framework.
Stablecoin Exemptions
Separately, the Australian Securities and Investments Commission (ASIC) is moving to expand exemptions for intermediaries dealing in stablecoins.
It has proposed adding AUDF, issued by Forte Securities Australia, to the list of tokens that can be distributed without separate licensing.
Forte Tech Solutions, the firm behind AUDF, has also been tapped for the Reserve Bank of Australia’s pilot program Project Acacia.
The company’s chief operating officer Paula Gregory said its inclusion highlighting its mission of “advancing the next phase of digital finance in Australia.”
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
