Australia Slaps Crypto Rule Breakers With Staggering 10% Turnover Fines

Down Under draws regulatory line in the sand—cross it and pay the price.

THE CRACKDOWN BEGINS

Australian regulators just upped the ante for crypto compliance failures. Companies face financial penalties that'll make even traditional bankers wince—up to 10% of annual turnover for serious breaches. No more wrist-slaps.

NEW ENFORCEMENT TEETH

The Australian Securities and Investments Commission gains unprecedented authority to pursue systemic compliance failures. Penalties scale with company size—meaning larger operations risk existential financial hits for cutting corners.

GLOBAL REGULATORY DOMINO EFFECT

Watch other jurisdictions follow Australia's lead as the regulatory framework solidifies. The message echoes across exchanges and custody services: play by the rules or don't play at all.

Because nothing says 'we're serious' like threatening to take a double-digit percentage of your revenue—almost makes you nostalgic for the days when regulators just asked nicely.

Consultation Period Set To Shape Rules For Industry Heavyweights

The ATO can already impose fines worth up to three times the amount evaded or pursue prison terms in cases of serious breaches.

The draft law will remain open for consultation until Oct. 24. It marks one of the most significant moves yet to regulate an industry that includes major global players such as Coinbase and Kraken.

Australia’s regulators have repeatedly warned about the risks of surging retail crypto investment. The nation’s securities and prudential watchdogs, as well as the central bank, have pressed for tougher standards. In August, financial crimes agency AUSTRAC ordered Binance’s local arm to appoint an external auditor over money laundering and terrorism financing concerns.

@binance faces mandatory audit in Australia over serious AML and terror financing concerns amid nationwide enforcement campaign.#Binance #Australiahttps://t.co/lVsofJm6gC

New Rules Extend Corporations Act To Digital Asset Platforms

Treasury said the new regime will bring digital asset and tokenized custody platforms under the Corporations Act, extending consumer protections and formal licensing requirements.

Smaller players will not face the full burden. Platforms that hold less than A$5,000 per customer and process under A$10m in annual transactions will be exempt.

The effort reflects a balancing act, with policymakers seeking to protect investors without stifling innovation. Industry feedback over the next month will shape the final framework before it moves toward parliament.

Separately, the Australian Securities and Investments Commission last week granted class relief to intermediaries distributing stablecoins issued by licensed AFS providers. The measure, which runs until June 2028, exempts them from separate market, clearing and settlement licences when handling stablecoins from approved issuers.

The relief is the first of its kind in Australia, signalling regulators’ willingness to provide flexibility where oversight is already embedded in existing financial licences.