Australian Crypto Industry Urges Labor Government to Accelerate Digital Asset Regulations

The Australian crypto industry is calling on the newly reelected Labor government to expedite the implementation of digital asset regulations. Following a decisive victory, Prime Minister Albanese's administration is now under pressure to align Australia with global standards in digital asset frameworks. Both major parties advocated for reform during their campaigns, but only the opposition pledged to draft legislation within one hundred days. Major exchanges like Binance and Coinbase emphasize the urgency of translating years of consultation into formal policy, expressing concern that Australia may fall behind the UK, EU, and US in establishing clear digital asset regulations.

Consultations between the Australian crypto industry and the Treasury began in late 2023, with firms like Binance presenting detailed proposals for digital asset frameworks. However, there is growing uncertainty about the timeline for meaningful reform. Joy Lam, the legal head of Binance, noted that while the government's promises are encouraging, they lack concrete deadlines. Coinbase's regional director advocated for a dedicated task force to drive the proposed measures forward, warning that without timely progress, Australia risks losing talent and capital to more welcoming overseas markets. This policy uncertainty continues to hinder long-term investment planning.

Treasurer Jim Chalmers has committed to releasing draft crypto legislation by the end of June, but experts remain skeptical. They fear that further delays could undermine Australia’s competitiveness. The government plans a phased rollout to minimize market disruption, but this approach raises concerns about prolonged legal uncertainty for platforms. Meanwhile, the EU has implemented its MiCA framework, the UK has released its draft rules, and US lawmakers are advancing stablecoin bills, narrowing Australia’s window to lead in this sector.

Some observers suggest that early inaction could lead to more robust outcomes. Critics argue that the Albanese government initially lacked clear direction on digital assets, but recent comments indicate a shift toward more mature and practical policies. Instead of mimicking restrictive US approaches, Australia appears to favor adaptable frameworks. A March 2025 Treasury statement emphasized innovation and leveraged the AFSL regime, aiming to provide a solid foundation for future crypto regulation that balances oversight with industry needs. Stakeholders cautiously welcome this pragmatic approach as a positive step forward.

Leveraging the AFSL framework could simplify licensing and oversight for centralized exchanges, avoiding unnecessary complications for industry players. It may also protect decentralized finance operations from undue restrictions. Joy Lam from Binance described the plan as sensible, building on existing regulatory knowledge. Additionally, the government will expand its Enhanced Regulatory Sandbox to support startups. Key players in the Australian crypto industry have cautiously welcomed these adaptive measures and ongoing tokenization reviews, which aim to foster innovation while maintaining market stability.

Fireblocks policy director Dea Markovy highlighted that much of the groundwork for crypto regulation is already in place. Key details, such as the Digital Asset Platforms regime, remain pending. Political momentum is building to clarify crypto regulation and intermediation rules. Markovy noted that a clear regulatory framework could resolve banking access problems. Lam added that banks require legal certainty to reengage with digital asset services. A formal licensing regime would lower perceived risks and enable institutions to support providers without ambiguity, potentially boosting investor confidence and market participation.

ASIC’s December guidance (INFO 225) will significantly influence upcoming laws by explaining how token issuance and intermediaries might fit within existing securities regulations. Under this guidance, certain memecoins and NFTs are excluded as financial products, while stablecoins and other asset-backed tokens may qualify. These distinctions are crucial for crafting relevant crypto legislation that fosters innovation. Ultimately, Australia’s evolving stance demonstrates growing regulatory understanding, but clear timelines and enforceable measures are needed to move beyond guidance documents.