Crypto Industry Backs Australia’s Draft Law, Warns of Vague Rules

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Australia has taken a major step toward regulating digital assets. The government’s new draft laws aim to bring crypto platforms under financial regulation, which is a move many see as long overdue.

But while the industry welcomes the direction, it’s also calling for clearer rules before things move forward.

Bringing Crypto Under Financial Rules

The proposed law would require digital-asset platforms to hold an Australian Financial Services Licence (AFSL) from ASIC, placing them closer to how banks and traditional institutions are regulated.

The draft introduces two new categories: digital asset platforms and tokenized custody platforms. Platforms with less than $6.5 million in annual transactions or holding under $3,300 in customer deposits will not need a licence, easing the pressure on smaller players.

Those who fail to comply could face penalties of up to A$16.5 million or 10% of annual turnover, showing how serious the government is about tightening oversight.

Also Read: Crypto Regulations in Australia 2025

Crypto Firms Applaud the Move, But Warn About Gaps

The reaction from Australia’s crypto industry has been largely positive.

Kate Cooper, CEO of OKX Australia, said the draft laws show crypto is finally becoming part of the mainstream financial system, but added that implementation will be key.

Liam Hennessy, partner at Thomson Geer, called the approach “fair,” noting that it avoids the strict rules in Europe and the confusing rules in the United States.

But others believe the draft still leaves too much room for confusion.

Caroline Bowler, former CEO of BTC Markets, said, “The draft legislation, as it stands, leaves some critical questions unanswered. Structure must come with clarity.”

Consultation Ends, Industry Awaits Next Steps

The consultation period closed on October 24, with submissions now under review. Crypto.com’s Vakul Talwar said the government should move fast and predicted legislation could arrive as early as March 2026.

Others, like MHC Digital’s Edward Carroll, expect it could take until the end of that year.

Australia’s Crypto Scene Keeps Growing

Even as regulation takes shape, crypto adoption in Australia continues to rise. According to a16z’s State of Crypto 2025 report , 31% of Australians now use crypto, up from 28% last year.

Stablecoins processed $46 trillion in transactions over the past year, rivaling Visa and PayPal, while global institutions like BlackRock, Visa, and JPMorgan expand their crypto services.

For now, all eyes are on how Australia turns this draft into law and whether it can strike the balance between safety and progress.