Australia is committed to establishing a new regulatory framework for cryptocurrencies.
The proposal will update the Corporations Act 2001 and the ASIC Act. If passed, the bill will introduce licensing and compliance rules for companies that manage or hold customer crypto assets.
The goal is to bring crypto service providers under the same financial protections as traditional markets.
Six-Month Compliance Period
If the bill becomes law, affected companies will have six months to obtain authorization and meet new requirements if they do not already hold an Australian Financial Services Licence (AFSL).
The Australian Securities and Investments Commission (ASIC) has already stated that businesses offering digital asset financial products or services may be obligated under the current Corporations Act and ASIC Act, but the bill will create a more direct framework for crypto platforms.
Importantly, the legislation primarily targets companies holding users' digital assets, rather than attempting to regulate blockchain technology itself.
Australia Already Requires AUSTRAC Registration
Businesses providing digital currency exchange services must register with AUSTRAC before offering their services, and operating without registration is illegal.
Therefore, the implementation of the new bill does not start regulation from scratch but builds upon existing anti-money laundering and registration requirements by adding a more explicit market conduct and licensing regime.