21-3-2025 – In a move to reshape Australia’s digital asset landscape, the Albanese administration has unveiled sweeping reforms to regulate cryptocurrency operations whilst maintaining the nation’s competitive edge in financial innovation.
The cornerstone of this regulatory overhaul mandates substantial cryptocurrency platforms to secure an Australian Financial Services Licence, though smaller enterprises and non-financial digital asset ventures shall remain exempt from these requirements.
The Treasury’s blueprint, detailed in Thursday’s policy paper on fostering an innovative digital asset sector, draws parallels with regulatory frameworks established in Singapore and the European Union. The latter’s Markets in Crypto-Assets (MiCA) regulations serve as a noteworthy benchmark for Australia’s approach.
A particularly pressing concern addressed in the reforms is the phenomenon of ‘debanking’, whereby traditional financial institutions have been severing ties with cryptocurrency businesses. The government’s engagement with major Australian banks signals a commitment to fostering more transparent relationships between conventional and digital finance sectors.
The scope of regulation encompasses various digital asset services, including trading platforms, custody providers and certain stablecoin issuers. Notably, enterprises focused on non-financial applications of blockchain technology, software development and infrastructure maintenance shall operate outside these regulatory parameters.
Industry stakeholders have welcomed these developments, with Jonathon Miller, Managing Director of Australia, highlighting the crucial need for tailored legislation to dispel existing market uncertainties.
The framework’s implementation timeline includes forthcoming draft legislation, scheduled for public consultation within the year. Additionally, the Australian Securities and Investments Commission is poised to enhance its regulatory guidance through updates to Information Sheet 225.
