Australia is stepping up its oversight of digital
assets, aiming to bring crypto exchanges and custody providers under the same
rules as traditional financial institutions.
The government has released a draft law that could reshape
the country’s crypto market, signaling tighter supervision and stronger
consumer protections.
Digital assets meet tradfi in London at the fmls25
Stricter Licensing Requirements
The draft legislation requires exchanges to obtain an
Australian Financial Services License (AFSL), placing them under the
supervision of the Australian Securities and Investments Commission (ASIC).
Currently, only platforms trading major assets like
Bitcoin are registered with AUSTRAC. Under the new rules, all digital asset
operators would need formal authorization to operate.
The law outlines requirements for wrapped tokens,
staking , and the broader token infrastructure. Exchanges must implement secure
custody practices, proper settlement procedures, and clear disclosure
protocols. Regulators could impose penalties up to AUD 16.5 million, either
calculated as a share of annual revenue or the financial benefit gained from
violations.
Targeted Rules and Penalties
Low-risk operators could qualify for exemptions. Firms
holding under AUD 5,000 per customer and processing less than AUD 10 million
annually may not need full licensing. Treasury officials said these thresholds
mirror those used for other financial products, reducing the burden on smaller
firms.
Recently, Australia’s national financial intelligence
agency introduced new rules for cryptocurrency ATMs, setting cash deposit and
withdrawal limits at AU$5,000 (about US$3,250).
Announced by AUSTRAC in June, the rules also include
stricter customer due diligence requirements, mandatory scam warnings, and
enhanced transaction monitoring obligations for operators.
While the measures apply directly to crypto ATM
providers, AUSTRAC said it expects local digital currency exchanges to consider
implementing similar limits if they handle cash-based crypto transactions.
Related: Australia Imposes AU$5,000 Limit on Crypto ATM Transactions
However, even as the Australian regulator streamlines the rules,
it is moving forward cautiously. Recently, ASIC announced that it removed over 9,240 pages of regulatory material this year in a major effort to simplify
rules that businesses have described as overly complex and costly.
The first phase of the overhaul includes consolidating
dozens of legal instruments and introducing digital services to replace
paper-based processes. The initiative is part of a broader push to make the
regulatory framework more accessible while maintaining protections for
consumers and investors.
More articles related to Australia:
Australia is stepping up its oversight of digital
assets, aiming to bring crypto exchanges and custody providers under the same
rules as traditional financial institutions.
The government has released a draft law that could reshape
the country’s crypto market, signaling tighter supervision and stronger
consumer protections.
Digital assets meet tradfi in London at the fmls25
Stricter Licensing Requirements
The draft legislation requires exchanges to obtain an
Australian Financial Services License (AFSL), placing them under the
supervision of the Australian Securities and Investments Commission (ASIC).
Currently, only platforms trading major assets like
Bitcoin are registered with AUSTRAC. Under the new rules, all digital asset
operators would need formal authorization to operate.
The law outlines requirements for wrapped tokens,
staking , and the broader token infrastructure. Exchanges must implement secure
custody practices, proper settlement procedures, and clear disclosure
protocols. Regulators could impose penalties up to AUD 16.5 million, either
calculated as a share of annual revenue or the financial benefit gained from
violations.
Targeted Rules and Penalties
Low-risk operators could qualify for exemptions. Firms
holding under AUD 5,000 per customer and processing less than AUD 10 million
annually may not need full licensing. Treasury officials said these thresholds
mirror those used for other financial products, reducing the burden on smaller
firms.
Recently, Australia’s national financial intelligence
agency introduced new rules for cryptocurrency ATMs, setting cash deposit and
withdrawal limits at AU$5,000 (about US$3,250).
Announced by AUSTRAC in June, the rules also include
stricter customer due diligence requirements, mandatory scam warnings, and
enhanced transaction monitoring obligations for operators.
While the measures apply directly to crypto ATM
providers, AUSTRAC said it expects local digital currency exchanges to consider
implementing similar limits if they handle cash-based crypto transactions.
Related: Australia Imposes AU$5,000 Limit on Crypto ATM Transactions
However, even as the Australian regulator streamlines the rules,
it is moving forward cautiously. Recently, ASIC announced that it removed over 9,240 pages of regulatory material this year in a major effort to simplify
rules that businesses have described as overly complex and costly.
The first phase of the overhaul includes consolidating
dozens of legal instruments and introducing digital services to replace
paper-based processes. The initiative is part of a broader push to make the
regulatory framework more accessible while maintaining protections for
consumers and investors.
More articles related to Australia: