Australia Drafts New Crypto Regulations, Targets Exchanges and Platforms

Australia is tightening its regulatory grip on the cryptocurrency sector with new draft legislation that extends financial services laws to digital asset platforms. The Albanese Government's digital asset roadmap, unveiled in March, now takes concrete shape with licensing requirements for exchanges handling staking, wrapped tokens, and other key activities.

Assistant Treasurer Daniel Mulino unveiled the framework at a crypto conference, positioning it as a cornerstone of Australia's strategy. Two new financial products—"digital asset platform" and "tokenized custody platform"—will fall under the Corporations Act, mandating Australian Financial Services Licenses for operators. Currently, only exchanges dealing with traditional financial products like derivatives require ASIC registration.

Smaller platforms gain reprieve through size-based exemptions, while breaches attract heavy penalties. The MOVE signals Australia's push to harmonize crypto oversight with mainstream finance, though its impact on innovation remains debated.