Australia Brings Crypto Platforms Under Financial Services Law
The federal government has moved to regulate cryptocurrency exchanges and custody providers under existing financial services law, with the Australian Securities and Investments Commission (ASIC) designated as the lead regulator. The framework requires covered firms to meet licensing, disclosure and compliance obligations similar to other financial services, and strengthens AML/KYC and custody standards.
The change is intended to increase consumer protection and legal clarity, making it easier for institutional investors and retail users to assess counterparty risk. While firms face new compliance costs and registration steps, the clearer rules aim to reduce regulatory fragmentation and support market confidence and growth. Industry participants should expect transitional arrangements and guidance from ASIC as firms adapt to the new regime.