Australia introduces new crypto regulations, targeting exchanges

Australia's government has introduced new rules for cryptocurrency. This regulation is designed to provide clarity for businesses while protecting consumers and ensuring market integrity. Major crypto exchanges will need to get an Australian Financial Services Licence. However, smaller companies and those not involved in financial services are exempt from this requirement. The government aims to regulate digital asset platforms and stablecoins under current financial laws. This approach follows similar actions taken by the European Union and Singapore. The Australian Treasury believes that aligning with international standards will make Australia's crypto sector more competitive. The new regulations will cover crypto exchanges, custody services, and specific trading platforms. Businesses that issue tokenized stored-value systems, like certain stablecoins, must also comply. However, companies developing non-financial digital assets or digital infrastructure will not be regulated under these new rules. The government is also addressing debanking, which is when banks limit services for crypto firms. The new licensing system should enhance transparency and risk management, potentially reducing debanking incidents by banks. Industry leaders, like Jonathon Miller from Kraken, support the government's initiative. He believes clear regulations will help eliminate confusion for crypto investors and businesses. The government plans to release draft legislation for public feedback later this year, with updates expected from the Australian Securities and Investments Commission.