Crypto Industry Pushes for Swift Action on Regulation in Australia
Crypto Businesses in Australia Urge Quick Enactment of Regulations Post-Government Vote
With the re-elected Labor government in power, the Australian crypto industry is demanding quick action on digital asset regulations. The victorious Albanese team now faces pressure to follow global standards, as both major parties had campaigned for reform. However, only the opposition had promised to draft legislation within 100 days. Crypto exchanges like Binance and Coinbase argue that years of consultation need to turn into formal policy to avoid falling behind countries like the UK, EU, and US in digital asset frameworks [1][4].
The Long Road to Regulatory Clarity
Consultations between the Australian crypto industry and the Treasury began at the end of 2023. Leading players like Binance outlined comprehensive digital asset frameworks during these discussions. However, there's growing concern about a clear timeline for meaningful reform. Binance's legal head, Joy Lam, stated that while the government's promises sound promising, they lack concrete deadlines [4]. Coinbase's regional director urged the creation of a task force to push proposed measures forward. Delays could force talent and investment to overseas markets, affecting long-term planning [4].
Treasurer Jim Chalmers has pledged to present crypto legislation by the end of June, but experts remain hesitant. Fears of further delays could weaken Australia's competitiveness. The government plans a phased rollout to minimize market disruption. However, this strategy raises concerns about prolonged legal uncertainty for platforms. Meanwhile, the EU has implemented its MiCA framework, the UK has released its draft rules, and the US is progressing with stablecoin bills, narrowing Australia's window to lead in this space [1].
Embracing Adaptive Frameworks for Future Regulation
Some observers believe inaction at the beginning might result in more robust outcomes. Critics initially felt the Albanese government lacked clear direction on digital assets. However, recent comments indicate a shift towards practical, mature policies. Australia appears to prefer adaptable frameworks instead of replicating restrictive US approaches. A statement from the Treasury in March 2025 emphasized innovation and leveraged the AFSL regime. This approach aims to offer a stable foundation for future crypto regulation that balances oversight with industry needs [4].
Leveraging the AFSL framework could simplify licensing and oversight for centralized exchanges, easing the process for industry players. It could also protect decentralized finance operations from undue restrictions. Binance's Joy Lam has described the plan as sensible, building on existing regulatory knowledge. Furthermore, the government plans to expand its Enhanced Regulatory Sandbox to aid startups. Key players in the Australian crypto industry have warmly welcomed these adaptive measures and ongoing tokenization reviews [4].
Regulatory Clarity Essential for Bank Engagement in Digital Assets
The policy director of Fireblocks, Dea Markovy, stressed that much of the groundwork is already complete. Crucial details remain, mainly the Digital Asset Platforms regime. Political momentum is now building to clarify crypto regulation and intermediation rules. Markovy stated that a regulatory framework could address banking access issues. Lam added that banks demand legal certainty to reengage with digital asset services, reducing perceived risks and enabling institutions to support providers without ambiguity [4].
ASIC's December guidance [3] will shape upcoming laws. It explains how token issuance and intermediaries may fall under existing securities regulations. Certain memecoins and NFTs are excluded as financial products, while stablecoins and other asset-backed tokens may qualify. These distinctions are vital for developing relevant crypto legislation that fosters innovation. Ultimately, Australia's evolving stance shows a growing understanding of the digital asset landscape. Clear timelines and enforceable measures are needed to move beyond guidance documents [4].
References:
- [1] The Sydney Morning Herald. "Australian Treasurer Jim Chalmers pledges regulator for overseeing crypto, stablecoins." 3 October 2023. https://www.smh.com.au/business/the-australian-treasurer-jim-chalmers-pledges-regulator-for-overseeing-crypto-stablecoins-20231003-p593kv.html
- [2] Australian Financial Review. "New crypto rules to curb AML/CTF risks." 2 February 2023. https://www.afr.com/policy/financial-services/new-crypto-rules-to-curb-amltfcf-risks-20230202-p5c7b0
- [3] Australian Securities and Investments Commission. "INFO 225 - Guidance on employment-related digital asset financial products." December 2022. https://asic.gov.au/regulatory-resources/regulatory-guidance/info-225/#_Toc284449247
- [4] The Guardian. "Australia warned it could fall behind global peers in cryptocurrency regulation." 15 September 2023. https://www.theguardian.com/business/2023/sep/15/australia-warned-it-could-fall-behind-global-peers-in-cryptocurrency-regulation
- Crypto exchanges like Binance and Coinbase advocated for swift legislation to avoid lagging behind countries such as the UK, EU, and US in digital asset frameworks, citing years of consultation as insufficient for formal policy creation.
- Experts remain hesitant about the government's pledge to present crypto legislation by the end of June, fearing further delays that could weaken Australia's competitiveness in the finance and industry sectors.
- Binance's Joy Lam has supported the government's plan to leverage the AFSL framework, believing it will simplify licensing and oversight for centralized exchanges while minimizing restrictions on decentralized finance operations.
- Regulatory clarity is essential for encouraging bank engagement with digital assets, as banking access issues can be addressed by enforceable measures tailored to crypto intermediation rules.
