Australia’s cryptocurrency sector is pressing the newly elected Labor government to urgently prioritize comprehensive digital asset regulations.
Industry leaders warn that Australia risks falling behind other global markets that have already begun implementing structured crypto frameworks.
For years, the country’s crypto space has operated in a regulatory grey zone, creating both uncertainty and vulnerability for innovators and investors.
According to stakeholders, clear and enforceable legislation is now essential, not only to foster innovation and protect consumers but also to ensure Australia’s continued relevance and competitiveness in the evolving global digital economy.
Calls for Government Commitment Within First 100 Days
Executives from leading global crypto exchanges are urging the Australian government to take decisive steps within the first 100 days of its administration.
Joy Lam, Binance’s head of global regulation and Asia-Pacific legal affairs, pointed out that extensive consultations with the Treasury have already taken place since late 2023.
She emphasized that the groundwork for legislation has been laid, and the government must now act to implement it.
Similarly, Coinbase’s Asia-Pacific managing director, John O’Loghlen, advocated for the immediate formation of a dedicated crypto-asset task force.
He argued that such a move would signal leadership intent and help fast-track meaningful regulatory development.
Also Read: Australia Decides To Crack Down On Crypto ATMs With New Task Force, Amid Growing Misuse
Treasury’s Phased Approach to Crypto Legislation
The Australian Treasury has confirmed its commitment to digital asset regulation and revealed plans to release draft legislation for public consultation later in 2025.
The legislative framework will be introduced gradually to prevent major disruptions to ongoing crypto business operations.
The first phase will focus on regulating digital asset platforms and modernizing Australia’s aging payment infrastructure.
The balanced, step-by-step rollout aims to nurture innovation while enforcing accountability, helping establish a regulatory ecosystem that supports both growth and consumer trust.
Also Read: Australia Slaps $5.1M Fine on Kraken Operator Over Compliance Failures
AFSL Model to Anchor Crypto Oversight
Central to the forthcoming regulatory strategy is the incorporation of crypto platforms into the existing Australian Financial Services License (AFSL) system.
Rather than building an entirely new regulatory body, the government plans to adapt current financial regulations to encompass digital assets.
By doing so, it hopes to simplify compliance, streamline oversight, and enhance investor protection.
The industry has responded positively to this move, noting that using an established model like the AFSL will reduce uncertainty and promote more seamless adoption of regulatory practices across crypto service providers.
Ongoing Enforcement Reflects Urgency for Regulation
Recent developments within Australia’s crypto landscape further emphasize the need for swift regulation.
The Australian Securities and Investments Commission (ASIC) recently received court approval to shut down 95 companies involved in crypto scams that defrauded over $35 million from investors, including “pig butchering” schemes that affected over 1,500 victims.
Meanwhile, AUSTRAC, the country’s financial intelligence agency, has placed crypto ATM operators on notice amid concerns over money laundering and fraud.
In another case, Westpac Bank faced backlash for freezing a customer’s $30,000 crypto-related transfer, reigniting the debate on “debanking” practices.
These incidents highlight the regulatory vacuum and reinforce the urgency behind the sector’s demand for structured, enforceable, and balanced legislation.
Also Read: Australian Authorities Intensify Crackdown on Fraudsters Impersonating Binance in Crypto Scams