The Albanese-led Australian government has proposed a comprehensive crypto regulation framework that will regulate exchanges and related services under existing financial laws. The government plans to release draft legislation in 2025 for public consultation, particularly aiming to address the issue of debanking. According to a statement from the Treasury, crypto exchanges, custody services, and certain brokerage firms will be subject to new compliance requirements similar to those of other financial services. Small platforms and blockchain developers that do not meet specific thresholds will be exempt from these regulations. The government also aims to classify payment stablecoins under the new Payments Licensing Reforms. The Treasury emphasizes collaboration with the country's largest banks to understand the extent of de-banking. This comes ahead of an anticipated federal election, with polls showing a competitive landscape between the Labor Party and the opposition Coalition. Industry leaders have welcomed the proposed reforms while expressing the need for clarity on capital adequacy and custody regulations to avoid stifling investment in Australia.

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