The Australian crypto industry is urging the reelected Labor government to move quickly on digital asset rules. After winning decisively, Prime Minister Albanese’s team now faces pressure to align Australia with global standards. Both major parties campaigned for reform, yet only the opposition promised to draft legislation within one hundred days. Exchanges like Binance and Coinbase argue that years of consultation must finally become formal policy. There is growing concern that Australia could lag behind the UK, EU, and US in digital asset frameworks. Industry leaders stress the need for clear, enforceable crypto rules soon.

Australia Faces Pressure to Finalize Crypto Policy 

Consultations between the Australian crypto industry and the Treasury began in late 2023 after detailed proposals were presented. Binance and other firms outlined comprehensive digital asset frameworks during these talks. However, doubts are rising about a clear timeline for meaningful reform. Joy Lam, Binance’s legal head, said the government’s promises sound good but lack firm deadlines. Coinbase’s regional director urged a dedicated task force to steer proposed measures forward. Without timely progress, Australia risks losing talent and capital to more receptive overseas markets. This policy unpredictability continues to hamper long-term investment planning.

Treasurer Jim Chalmers pledged draft crypto legislation by the end of June, though experts remain cautious. They worry further delays could weaken Australia’s competitiveness. The government plans a phased rollout to limit market disruption. Yet this strategy raises concerns about prolonged legal uncertainty for platforms. Meanwhile, the EU has implemented its MiCA framework, and the UK recently released its draft rules. In the US, lawmakers are advancing stablecoin bills, further shrinking Australia’s window to lead this space. Australia’s chance to take the lead in this sector is quickly closing.

Leveraging Existing Frameworks for Future Crypto Governance

Some observers believe early inaction may lead to more robust outcomes. Critics say the Albanese government initially lacked clear direction on digital assets. Recent comments suggest a shift toward mature, practical policies. Instead of copying restrictive US approaches, Australia appears to prefer adaptable frameworks. A March 2025 Treasury statement highlighted innovation and leveraged the AFSL regime. This model aims to provide a solid base for future crypto regulation that balances oversight with industry needs. Stakeholders cautiously welcome this pragmatic approach as a step forward.

Leveraging the AFSL framework may simplify licensing and oversight for centralized exchanges. This approach avoids complicating the process for industry players. It could 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. These steps aim to foster innovation while maintaining sufficient safeguards for market stability.

Regulatory Certainty Vital for Bank Engagement in Digital Assets

Fireblocks policy director Dea Markovy highlighted that much of the groundwork is already complete. Key details remain pending, notably the Digital Asset Platforms regime. Political momentum is now building to clarify crypto regulation and intermediation rules. Markovy noted that a clear regulation 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. Addressing these issues could boost investor confidence and market participation.

How ASIC’s Guidance Shapes the Australian Crypto Industry?

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