PANews reported on March 21 that according to Decrypt, the government led by Australian Prime Minister Anthony Albanese has outlined a new digital asset regulatory framework that aims to provide greater certainty to industry participants while addressing risks associated with consumer protection and market integrity. The reform will require major cryptocurrency platforms to obtain an Australian financial services license, while exempting small businesses and companies that are not involved in financial services. The "Developing an Innovative Australian Digital Asset Industry" statement document released by the Australian Treasury on Thursday details plans to regulate digital asset platforms and payment stablecoins under existing financial services laws. "By aligning with international best practices, Australia can enhance the global competitiveness of the digital asset industry," the document reads.
The proposed framework will apply to cryptocurrency exchanges, custody services, and certain brokerage platforms that facilitate the trading and storage of digital assets. Businesses that provide tokenized stored value facilities, including some stablecoin issuers, will also be subject to licensing and compliance obligations. However, companies that create or use digital assets for non-financial purposes, develop software, or maintain digital asset infrastructure will not be subject to the new regulations.
The government also acknowledged that unbanking, where financial institutions restrict services to cryptocurrency companies, is a growing problem. The new licensing regime is designed to improve risk management and transparency within the industry, which could reduce unbanking by major financial institutions. “The government has been working with stakeholders to ensure transparency and fairness, including engaging with major Australian banks to understand the extent of unbanking,” the document reads.
