Crypto exchanges and stablecoin issuers in Australia may soon face tighter regulations under a newly proposed licensing framework. The Australian Treasury released a policy paper on March 20 outlining plans to bring key parts of the digital asset industry under existing financial services laws.
The proposal aims to improve market integrity, protect consumers, and foster responsible innovation. If implemented, the new rules will require digital asset platforms—such as exchanges, custodians, and certain brokerages—to operate under an Australian Financial Services Licence. Stablecoin issuers offering tokenized stored-value facilities will also be subject to similar requirements, ensuring clear redemption rules and customer asset protections.
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Impact on Crypto Businesses and Exemptions
The proposed framework won’t regulate businesses that create digital assets for non-financial purposes, maintain blockchain infrastructure, or develop software. Additionally, small-scale and early-stage platforms may receive exemptions from full licensing but could still be subject to tailored compliance requirements.
Stablecoins used for payments will be treated similarly to traditional non-cash payment systems. However, trading stablecoins or wrapped tokens on secondary markets will not automatically classify platforms as financial markets.
The draft law is expected in 2025, with an official rollout timeline yet to be determined.
Addressing Australia’s De-Banking Issue
The government is also tackling the issue of de-banking, where crypto firms struggle to access traditional banking services. Major banks such as Commonwealth Bank, Westpac, NAB, and HSBC Australia have restricted or cut off services to crypto businesses in recent years. Authorities acknowledge that de-banking hinders competition and innovation in the financial sector and have pledged to collaborate with banks to find a solution.
Regulators are also exploring the potential of tokenization in asset markets, crypto tax reporting standards, developments in DeFi, and the feasibility of a central bank digital currency.
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