Australian Crypto Firms Support New Laws but Say Critical Issues Remain Unresolved
Crypto firms welcome regulation but warn unclear rules could stifle innovation and hurt competitiveness
Australia’s crypto sector has cautiously welcomed the government’s new draft legislation for digital assets, but major firms warn that the proposal still leaves crucial questions unresolved. The Treasury’s consultation, which closed on Friday, gathered responses from exchanges and blockchain companies calling for clearer guidance before implementation.
The draft law would classify “digital asset platforms” and “tokenized custody platforms” as financial products under the Corporations Act, requiring both to hold an Australian Financial Services License and register with the Australian Securities and Investments Commission (ASIC). While industry leaders support the push for structure, they stress that structure must come with clarity.
Former BTC Markets CEO Caroline Bowler said the draft “leaves critical questions unanswered,” including how to define crypto assets that aren’t financial products and how exchanges that don’t trade such assets could still be treated as financial markets. She cautioned that unclear rules risk creating unnecessary burdens without real consumer protection.
Swyftx, one of Australia’s largest exchanges, said the draft needs “simplifying and clarifying,” warning it gives regulators too much discretion. The company urged the government to clearly define ASIC and Treasury powers to prevent confusion and ensure fair oversight. Swyftx also flagged concerns about restrictions on offshore liquidity and limited permissions for licensed advisers to discuss cryptocurrencies.
Mandy Jiang of CloudTech Group described the legislation as “a significant step forward” but said too many details, including licensing standards, are left to ASIC’s future decisions.
Crypto.com’s Australian head, Vakul Talwar, urged the government to “keep momentum” and introduce a finalized bill as early as March 2026, while others believe approval could stretch into late 2026.
Despite broad support, industry leaders agree on one thing: without clearer rules, Australia’s attempt to regulate crypto could end up slowing down the very innovation it aims to secure.
