Australia Proposes New Crypto Regulations to Strengthen Industry

2 mins mins

Key Points:

Australia proposes new digital asset regulations for enhanced certainty and protection.
Major crypto platforms need Australian Financial Services License, aligning with international standards.
Mixed market reactions, but potential benefits for mitigating growth barriers and boosting economic opportunities.

australia-aims-for-global-standards-in-crypto-regulation — Australia Aims for Global Standards in Crypto Regulation

Australia’s government, led by Prime Minister Anthony Albanese, has proposed a new regulatory framework for digital assets, aimed at enhancing industry certainty and consumer protection.

The proposed framework requires major crypto platforms to obtain an Australian Financial Services License, enhancing consistency with international standards. This action underscores Australia’s commitment to strengthening market integrity but excludes companies focused on non-financial digital asset applications. The government is targeting the “de-banking” trend and is in active dialogue with financial institutions. The expectation is that new licensing will improve risk management.

Market reactions have been mixed. Caroline Bowler, CEO of BTC Markets, expressed support, stating that the reforms are sensible and competitive. Jonathon Miller from Kraken emphasized the potential to mitigate growth barriers, particularly regarding debanking issues.

Jonathon Miller, Managing Director of Kraken Australia, stated, “We believe that by establishing a clear crypto regulatory framework and mitigating problems like debanking, government can remove the barriers hampering growth in the Australian economy.”

The proposal builds on earlier consultations from October 2023. There’s an emphasis on joining global peers in regulatory practices. Experts assert these measures will likely drive market stability and consumer confidence. Enhanced risk management could facilitate broader adoption of digital currencies by reducing banking constraints, boosting economic opportunities for Australian fintech companies.