Australia Targets Crypto Platforms with New Financial Rules

The plan focuses on crypto exchanges, custodial services, and certain brokers involved with digital currencies. These businesses would need to meet the same requirements as other financial firms, such as holding licenses, protecting customer funds, and maintaining minimum levels of capital.

The announcement was made by the Treasury Department on March 21. These changes come as the country prepares for a federal election.

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Polls show a close contest between Prime Minister Anthony Albanese’s Labor Party and Peter Dutton’s Coalition. Although the election date is still to be confirmed, both parties have shown interest in tightening crypto regulation.

The government plans to apply financial rules to larger crypto platforms but not to the entire digital asset market.

Smaller or early-stage companies that do not reach certain size limits would be left out. Developers creating blockchain tools or digital tokens that are not financial products would also be excluded from the new rules.

Stablecoins used for payments will be treated as stored-value products under the government’s payment reforms. However, some types of stablecoins and wrapped tokens will not be affected. The Treasury clarified that trading in these specific assets won’t be treated the same as operating a financial market.

Alongside these plans, the government has said it will work with major banks to better understand and address the issue of debanking, where banks cut off services to crypto businesses.

Meanwhile, the US Securities and Exchange Commission (SEC) is reconsidering a proposed rule introduced in 2023 under former chair Gary Gensler. What did the agency say? Read the full story.