Australia’s New Step Toward Crypto Oversight 🇦🇺
Australia is taking a big step to regulate its crypto industry. The government has released draft legislation that would bring crypto exchanges under the same rules as traditional financial services businesses.
Assistant Treasurer Daniel Mulino described the draft as the “cornerstone” of the country’s digital asset roadmap. He emphasized that the government is seeking stakeholder feedback before finalizing the law.
New Rules for Digital Asset Platforms ⚖️
The draft legislation proposes two new financial product categories under the Corporations Act:
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Digital asset platforms
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Tokenized custody platforms
These platforms will now need an Australian Financial Services License (AFSL). This marks a major shift, as currently only exchanges dealing in derivatives or other financial products must register with regulators.
Mulino explained that the law will also cover wrapped tokens, staking, and token infrastructure, with rules tailored to the unique risks of digital assets.
Penalties and Exemptions 🛡️
Breaches of the new law could lead to heavy penalties of up to AU$16.5 million ($10.8 million) or 10% of annual turnover. However, smaller “low-risk” platforms—holding under AU$5,000 per customer and handling less than AU$10 million a year—will be exempt.
Mulino said the focus is on protecting consumers, pointing out that past failures of crypto firms highlighted risks where client funds weren’t properly safeguarded.
“This is about legitimizing the good actors and shutting out the bad,” he said.
Crypto Industry Response ✅
The draft law has been welcomed by major exchanges operating in Australia. Leaders from Swyftx, OKX, Crypto.com, and Kraken all voiced support for stricter oversight, saying it will bring clarity, trust, and stability to the market.
OKX Australia’s CEO Kate Cooper stressed that the real impact will depend on enforcement, ensuring licensed operators aren’t undercut by unregulated players.
Crypto.com’s Vakul Talwar called the move “long overdue,” noting it strikes a balance between protecting users and avoiding excessive red tape.
What’s Next? 📅
The draft legislation is now open for consultation until October 24. The government aims to refine the rules with industry feedback before moving to implementation.
This effort reflects Australia’s broader ambition to legitimize crypto markets, give businesses certainty, and provide consumers with confidence.
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