Australia Proposes Regulatory Framework for Crypto Platforms

Australia's Treasury and securities regulator ASIC have unveiled a proposed regulatory framework aimed at bringing cryptocurrency platforms under the umbrella of financial services laws. The move seeks to enhance consumer protection by clarifying licensing requirements and operational standards for digital asset businesses.

The framework would mandate crypto operators to obtain an Australian Financial Services License (AFSL), aligning their compliance obligations with traditional financial institutions. Two new platform categories emerge from the proposal: digital asset platforms and custody platforms, designed to address conflicts of interest, custody practices, and dispute resolution.

Notably, the regulations WOULD encompass packaged tokens, public token infrastructure, and staking services. This development coincides with ASIC's recent licensing exemption for stablecoin intermediaries, suggesting a nuanced approach to different crypto asset classes.