The Australian Treasury has released a plan to develop cryptocurrency legislation in the country. It aims to create a regulated ecosystem that combines innovation with consumer protection.
The relevant bill will be presented for public consultation this year.
It will regulate exchanges and crypto custodians under existing financial services legislation. Companies are expected to be required to adhere to client asset protection rules, meet minimum capital requirements, and obtain an AFSL.
According to the Treasury, the reforms will not affect all participants in the digital economy. Small platforms, blockchain developers, and companies whose products are not classified as financial will not be subject to the new rules.
Payment stablecoins will be regulated similarly to traditional systems. However, some “stablecoins” and wrapped tokens will be exempt from tax.
As part of the program, the government will work with Australia’s four largest banks to address the issue of debanking crypto companies — the refusal to provide services.
Research into CBDCs and the launch of a regulatory sandbox are also planned, allowing firms to test financial products without a license.
The federal elections, scheduled for May 17 or earlier, could impact the future of the reforms. They will see Prime Minister Anthony Albanese’s Labor Party face off against the opposition coalition led by Peter Dutton.
The opposition coalition has already announced plans to prioritize crypto industry regulation if victorious.
BTC Markets CEO Caroline Bowler told Cointelegraph that the proposed reforms will help Australia remain competitive globally.
However, she urged clarification on capitalization and custodial requirements to ensure they do not hinder investment.
Kraken Australia Managing Director Jonathan Miller added that the urgent need for new laws is due to legal uncertainty and debanking, which are stalling the industry’s development in the country.
Back in December 2024, the ASIC accused Binance of violating consumer rights. According to the regulator, this led to significant losses from risky derivatives.