Australia Moves to Regulate Crypto Like Traditional Finance
Australia unveils draft legislation to regulate crypto firms under the same laws as traditional financial services.
- Australia introduces draft crypto regulation framework
- Crypto firms to follow financial services laws
- New rules aim to protect consumers and boost innovation
Australia is taking a major step toward integrating cryptocurrency into its mainstream financial system. The government has released a draft legislation aimed at bringing crypto exchanges and service providers under the same regulatory umbrella as banks and other financial institutions.
The proposed legislation focuses on regulating crypto custody and exchange services, ensuring they meet the standards of traditional finance. This move reflects growing global efforts to create clear rules for the digital asset sector while promoting innovation and consumer protection.
Crypto Companies to Face Stricter Oversight
Under the draft law, companies that deal with crypto assets—such as exchanges, custodians, and brokers—will be required to hold an Australian Financial Services (AFS) license. This aligns them with the same regulatory requirements as legacy financial institutions.
The bill outlines compliance requirements around capital reserves, custody standards, and transparency. It’s a response to recent high-profile failures in the crypto industry, which highlighted the need for better oversight to protect consumers and investors.
Australia’s Treasury stated that the regulations aim to minimize systemic risks, combat fraud, and provide clarity for businesses operating in the crypto space. If approved, the new rules are expected to come into effect in 2026, giving firms time to adapt to the changes.
Global Trends in Crypto Regulation
Australia is not alone in its efforts. Countries like the UK, Singapore, and the EU are also rolling out clearer frameworks for crypto regulation. This draft law positions Australia among the global leaders in digital asset oversight.
Industry experts say this step could boost investor confidence and attract institutional players to Australia’s crypto market. However, some in the crypto community worry the new requirements could limit innovation or create barriers for smaller startups.
Still, the move is widely seen as a necessary evolution, aiming to balance innovation with accountability.
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