Australia Imposes 10% Fines on Non-Compliant Crypto Exchanges

Australia is tightening its regulatory grip on cryptocurrency exchanges, introducing hefty fines for rogue operators. The Treasury's draft legislation proposes amendments to the Corporations Act 2001, classifying digital asset platforms (DAPs) and tokenized custody platforms (TCPs) as financial products. This move subjects them to full licensing requirements and consumer protections.

Currently, only anti-money laundering and know-your-customer rules apply to crypto platforms in Australia. The new framework will mandate Australian Financial Services License (AFSL) registration, significantly expanding oversight. Penalties for violations, including deceptive conduct, could reach A$16.5 million or 10% of the exchange's turnover—whichever is greater.

Despite 400 exchanges being registered with the Australian Securities and Investments Commission (ASIC), only a fraction are actively operating. The licensing framework aims to weed out bad actors while supporting legitimate industry growth. "The focus is on businesses holding client assets, not the digital assets themselves," clarified the Treasury, noting existing frameworks already treat crypto like other asset classes.