Australia’s crypto industry faces a major shake-up with new draft guidelines that could mandate financial licensing for most crypto firms. The Australian Securities and Investments Commission (ASIC) has proposed changes that would categorize many digital assets as financial products, requiring businesses such as exchanges and custodians to obtain licenses. While the regulations aim to bring clarity and protect consumers, critics warn they could stifle innovation and drive smaller firms offshore due to high compliance costs.
Industry experts highlight the challenges posed by these changes, noting that startups may struggle to meet the financial requirements, while larger companies are better positioned to adapt. The draft guidance could significantly increase costs for firms operating in Australia, making it less competitive compared to launching in other jurisdictions.
Despite the hurdles, some view the move as a step towards much-needed regulatory clarity for the sector. ASIC has invited feedback on the proposed rules, with a final version expected by mid-2025. Stakeholders are encouraged to participate in shaping the future of crypto compliance in Australia.
