Catenaa, Monday, March 24, 2025-The Australia government on Thursday announced plans to establish a ‘fit for purpose’ digital asset framework aimed at fostering innovation while ensuring consumer protection.
The Treasury released a paper Thursday detailing efforts to regulate digital asset platforms (DAPs) and stablecoins, with input from industry leaders, regulators, and the public.
The initiative seeks to position Australia as a global leader in digital assets, building on benefits such as streamlined payments and enhanced investment tools.
The framework will require DAP operators, including crypto exchanges and custodians, to comply with financial service regulations under the Australian Financial Services Licence (AFSL).
Businesses will face tailored rules to safeguard customer assets while avoiding undue regulatory burdens on startups and software developers.
Additional measures include a proposed crypto asset reporting framework to combat tax evasion, expanded regulatory sandboxes for innovation, and collaboration with the Reserve Bank of Australia to explore a wholesale central bank digital currency (CBDC).
Australia’s approach follows global regulatory efforts, including the EU’s MiCA framework and Singapore’s digital asset policies. Meanwhile, US President Donald Trump has pushed for America to become the “crypto capital of the world,” recently signing an executive order to establish a US Strategic Bitcoin Reserve.
Draft legislation for Australia’s digital asset framework is expected in 2025, with further public consultation planned.
