Australia Plans Crypto Rules, Tackles De-banking

Australia is moving forward with new regulations for crypto exchanges. The plan, according to sources, is to bring them under the same financial rules as other industries. 

The government recently announced that these changes would ensure better consumer protection while also addressing the issue of de-banking. Some of the proposed changes will affect crypto exchanges, brokerage firms, and custody providers. Plus, the changes would demand total compliance with local policies.

Stricter Rules for Exchanges, Relief for Smaller Players

This means they’ll have to follow asset protection rules, obtain an Australian Financial Services Licence, and meet minimum capital requirements.

However, smaller platforms and blockchain software developers won’t be affected unless they hit specific size thresholds. The plan also sets new rules for stablecoins, treating them as stored-value facilities under payment reforms. Some stablecoins and wrapped tokens will be exempt from strict trading regulations.

Beyond regulation, the government is addressing de-banking, where major banks refuse to provide services to crypto businesses. Officials plan to work with Australia’s four biggest banks to better understand the issue and find solutions.

Why is This Coming Now?

Australia has been working on crypto regulations since 2022, consulting industry experts to create a fair framework. With a federal election approaching, the timing is important. The opposition Coalition Party, led by Peter Dutton, has also expressed support for crypto regulation, making this a key topic ahead of the vote.

What’s Next?

The draft legislation will soon be open for public feedback. In 2025, Australia will introduce an Enhanced Regulatory Sandbox, allowing businesses to test financial products without needing a license. There’s also an ongoing review into a central bank digital currency (CBDC).

Source: yougov

Industry leaders like Caroline Bowler (BTC Markets CEO) and Jonathon Miller (Kraken Australia MD) support the move but stress the need for clarity on capital requirements. They believe clear rules will help Australia stay competitive in the global crypto market.

With elections looming, the fate of these crypto rules depends on who takes office.

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