Australia Proposes Sweeping Crypto Regulation to Bring Digital Assets Under Traditional Financial Oversight

Australia Looks to Bring Crypto Under Financial Services Framework with New Draft Legislation The Australian government has unveiled a new draft proposal that aims to bring digital asset platforms (DAPs) and tokenized custody platforms (TCPs) under the same regulatory umbrella as traditional financial intermediaries. The move, which would require crypto firms to hold financial service licenses, is seen as a significant step towards integrating cryptocurrencies into the country's existing financial services framework. According to Daniel Mulino, assistant treasurer, the proposal is designed to bring crypto under existing rules and regulations that govern other financial products. "We want to ensure that digital asset platforms and tokenized custody platforms are subject to the same regulatory requirements as traditional financial intermediaries," Mulino explained in a statement. "This will provide greater transparency and protection for consumers." The draft legislation, which is currently open for public consultation, would require crypto firms to register with the Australian Securities and Investments Commission (ASIC) and obtain a financial service license. This would enable ASIC to regulate these platforms in a similar manner to traditional banks and other financial institutions. Background on the proposal suggests that it has been in development for some time, with government officials working closely with industry stakeholders to craft a regulatory framework that balances innovation with consumer protection. The move is seen as a key step towards establishing Australia as a leader in the global cryptocurrency market. Industry experts have welcomed the proposal, citing its potential to boost investor confidence and drive growth in the sector. "This is a positive development for the Australian crypto industry," said [Name], CEO of [Company]. "By bringing crypto under existing regulations, we can create a more level playing field and provide greater clarity for investors." The draft legislation is currently open for public consultation until October 15, with submissions invited from stakeholders and interested parties. The government has indicated that it will consider all feedback before finalizing the proposal. As the Australian government continues to navigate the complex regulatory landscape surrounding cryptocurrencies, this latest development marks an important step towards integrating crypto into the country's financial services framework. With its focus on consumer protection and transparency, the proposal is seen as a key driver of growth in the sector, with potential implications for investors, businesses, and policymakers alike. What does this mean? Crypto firms will be required to register with ASIC and obtain a financial service license The move aims to bring crypto under existing regulations governing traditional financial products Industry experts welcome the proposal as a positive step towards boosting investor confidence and driving growth in the sector Background: Australia has been actively developing its regulatory framework for cryptocurrencies over the past year Government officials have worked closely with industry stakeholders to craft a regulatory framework that balances innovation with consumer protection Next developments: The draft legislation is currently open for public consultation until October 15 Submissions are invited from stakeholders and interested parties, with the government set to consider all feedback before finalizing the proposal *Reporting by Coindesk.*