Australia’s Treasury has outlined plans to regulate the digital assets sector, focusing on platforms that hold client assets, including crypto exchanges, custody providers, brokers, and stablecoin issuers.
The rules aim to enhance consumer protection while sidestepping decentralized finance (DeFi) for now, as most DeFi does not involve asset custody.
Digital asset providers and those operating or dealing in them will fall under the regulations.
Exchanges must disclose when assets lack an identifiable issuer, while smaller platforms may receive exemptions but must still meet compliance standards.
The regulations exclude non-financial assets like NFTs, software development, and some maintenance roles.
Stablecoin issuers will be regulated under Australia’s ‘stored value facility’ (SVF) framework, similar to EU e-money rules.
The Treasury’s lighter focus on crypto issuance may stem from existing securities laws, with ASIC already defining which cryptocurrencies qualify as financial products.
Plans also include expanding a regulatory sandbox, while the Reserve Bank of Australia continues to explore wholesale CBDC and asset tokenization.
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