Industry leaders welcome government oversight but warn of unresolved legal and operational questions
Australia’s cryptocurrency industry has broadly welcomed the government’s draft digital asset regulations, released last month, but major exchanges and blockchain firms are urging the Treasury to provide clearer guidance before the laws are finalized. While the proposed framework is seen as a positive step toward structured oversight, key industry players argue that ambiguities in the draft law could hinder innovation and fair competition.
Draft Law Gains Support, But Questions Remain
The new proposal aims to extend existing financial services laws to digital asset platforms, creating two new categories under the Corporations Act — digital asset platforms and tokenized custody platforms. Both would require an Australian Financial Services License (AFSL) and registration with the Australian Securities and Investments Commission (ASIC).
Former BTC Markets CEO Caroline Bowler acknowledged the government’s intent, stating that “structure must come with clarity.” She noted that the draft “leaves some critical questions unanswered,” such as how platforms dealing with non-financial products would be classified.
Leading exchange Swyftx described the draft law as needing “simplifying and clarifying,” warning that the current version gives the Treasury “a high degree of discretion” to impose changes that could unsettle the sector. The firm recommended adding clear guidance to define the respective powers of the Treasury and ASIC, helping businesses understand compliance expectations.
Blockchain firm CloudTech Group’s executive director Mandy Jiang called the proposal a “significant step forward,” but emphasized that “many critical details, including licensing and custody standards, are deferred to ASIC.” She warned that the law’s success “will largely depend on the timeliness and quality of ASIC’s forthcoming guidance.”
Swyftx also flagged uncertainty around offshore liquidity sourcing, stating that without clear provisions, Australian platforms could face disadvantages compared to international exchanges. The company added that financial advisers are currently barred from advising directly on cryptocurrencies, which limits investor education and market maturity.
Swyftx CEO Jason Titman supported the financial services approach but stressed that regulation must ensure “consumer protection and a level playing field for local businesses.”
The Treasury’s consultation period ended in October, with legislation expected by early 2026. Crypto.com’s Australia general manager Vakul Talwar urged the government not to delay, predicting that a finalized bill could be introduced “as early as March” if bipartisan support continues.
Meanwhile, MHC Digital Group’s Edward Carroll cautioned that “there’s still meaningful work to be done translating consultation feedback into a workable bill.”
Australia’s proposed crypto regulations signal a major step toward formalizing digital asset oversight, but industry leaders agree that clarity, proportionality, and timely implementation will determine their success. As Bowler put it, “Regulation should be fit for purpose — without that, we risk building a burdensome system that doesn’t truly enhance consumer protection.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.