Industry calls for urgent crypto law reforms after Australian election

The Australian crypto industry is urging the newly reelected Labor government to urgently prioritize comprehensive crypto law reforms to keep pace with global markets. Industry leaders emphasize the need for swift action, with calls to establish a Crypto-Asset Taskforce within the government's first 100 days to develop legislation that protects consumers, fosters innovation, and prevents talent and capital from leaving Australia.

Treasurer Jim Chalmers’ office plans to release draft legislation on regulating digital asset platforms and modernizing payment systems later this year, though some industry figures remain cautiously optimistic about the timeline.

The government’s recent “Statement on Developing an Innovative Australian Digital Asset Industry” proposes using the existing Australian Financial Services License (AFSL) regime to regulate digital asset platforms and stablecoins, focusing on centralized custody and sidestepping decentralized finance complexities.

Additional measures include reviewing the Enhanced Regulatory Sandbox to support digital asset startups and exploring tokenization opportunities.

The Australian Securities and Investments Commission (ASIC) has also contributed regulatory proposals to inform the new framework, which aims to clarify which crypto assets are financial products.

Industry experts highlight that clear licensing frameworks will help alleviate debanking issues by providing banks with regulatory certainty, though further guidance for banks may be needed.

The crypto sector is watching closely as Australia seeks to position itself as a leader in digital asset regulation amid rapid international developments.

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