TLDR
- Australian crypto firms support the new draft laws but call for clearer regulations before implementation.
- The draft laws require digital asset platforms to obtain an Australian Financial Services Licence from ASIC.
- Platforms with smaller operations are exempt from licensing requirements to ease the burden on smaller players.
- Non-compliance with the new regulations could result in hefty penalties of up to A$16.5 million or 10% of annual turnover.
- While many in the industry back the laws, some experts express concerns over critical unanswered questions.
Australia has introduced draft laws aimed at regulating digital assets. The proposed regulations will bring crypto platforms under the country’s financial oversight. However, while the industry primarily supports the move, many believe the rules lack clarity. The consultation period for the draft closed on October 24. Submissions are now under review, with legislation expected as early as March 2026.
New Regulation for Digital Asset Platforms
The Australian government’s draft laws require crypto platforms to hold an Australian Financial Services Licence (AFSL) from ASIC. This requirement aligns digital asset platforms with traditional financial institutions, such as banks. The new rules are seen as a step toward integrating crypto into the mainstream financial system.
Platforms with annual transactions of less than $6.5 million or customer deposits of under $3,300 will not require an AFSL. This exemption is designed to ease the regulatory burden on smaller players in the crypto space. The government aims to establish a balanced framework that promotes growth while ensuring effective oversight.
The penalties for non-compliance could reach up to A$16.5 million or 10% of annual turnover. This demonstrates the government’s commitment to regulating the sector. Australian crypto firms are now focusing on the finer details of the proposed legislation.
Australian Crypto Firms Back Draft, Seek Details
The response from Australian crypto firms has been generally positive. Kate Cooper, CEO of OKX Australia, believes the draft demonstrates that cryptocurrency is becoming increasingly mainstream. She emphasized that while the direction is promising, the implementation of the laws will be crucial.
Liam Hennessy, a partner at Thomson Geer, described the approach as “fair.” He pointed out that the laws avoid the overly strict rules in Europe and the confusion in the United States. However, some industry leaders feel the proposed regulations still leave too many unanswered questions.
Caroline Bowler, former CEO of BTC Markets, raised concerns about the lack of clarity in the draft laws. She stated that structure must come with clearer definitions. Industry participants are eager for more detailed guidelines to understand the regulatory landscape better.
Expectations for Legislation Timeline
Despite some concerns, the crypto industry remains optimistic about the new regulations. Vakul Talwar of Crypto.com urged the government to act quickly. He believes the final legislation could be introduced as soon as March 2026.
Other experts, such as Edward Carroll from MHC Digital, predict a later timeline, possibly toward the end of 2026. The Australian crypto market continues to grow, with 31% of Australians now using crypto, up from 28% the previous year. As global institutions like Visa and BlackRock expand their crypto services, Australian crypto firms are keen to ensure they are part of a well-regulated environment.
