Australia Moves to Tighten Crypto Exchange Rules With Draft Law

[kevin1]

Australia is preparing to overhaul its crypto regulations, introducing draft legislation that would bring exchanges under the same framework as traditional financial service providers.

Assistant Treasurer Daniel Mulino unveiled the proposal during the Global Digital Asset Regulatory Summit, calling it “the cornerstone of our digital asset roadmap.”

The draft law creates two new financial products under the Corporations Act — a digital asset platform and a tokenized custody platform. Exchanges offering these services will be required to obtain an Australian Financial Services License (AFSL), overseen by the Australian Securities and Investments Commission.

Currently, exchanges only need to register with AUSTRAC, Australia’s anti-money laundering watchdog. Mulino said the new framework aims to “legitimize good actors, shut out the bad, and give consumers confidence.”

[Nahid Hossen]

Australia leveling up crypto rules Exchanges now set to need AFSL licenses under ASIC, not just AUSTRAC reg. Big shift! ️

[Rimon Khan]

Mulino calls it the “cornerstone of digital asset roadmap” New AFSL regime aims to legitimize good actors & kick out the bad.