The crypto industry is evolving with multiple blockchain projects and tokens. Along with this growth comes increased regulatory oversight. Adding to the recent regulations, Australia is on the horizon, looking to implement new and stricter crypto rules. For crypto rule breaches, the government plans to impose a fine of 10% of annual turnover.
What law is exactly Australia implementing
Australia revealed a draft legislation for regulating cryptocurrency platforms, meaning the law is still in its early stages of development. Assistant Treasurer Daniel Mulino introduced the draft, signaling a push towards transparency and clarity in the crypto sector. The government did not create a new regulation, but extended the Corporations Act to include digital asset activities.
The draft legislation is now open for public consultation and will last till October 24, 2025.
Special license for crypto platforms
Once implemented, the new rules will require crypto service providers to hold an Australian Financial Services Licence (AFSL). This is the same license brokers, banks, and insurance providers already possess.
Penalties for crypto rule breaches
The country has clearly mentioned penalties for crypto service providers who break the rules. Violators will have to pay fines up to AUD 16.5 million, or even more, depending on the case. The penalty could also be three times the benefit gained, or 10% of annual turnover, whichever amount is higher.
Australia has been tightening crypto rules
The proposed law did not come out of thin air. Australia has long been at the forefront of monitoring crypto activities in the country. In August, the Australian Transaction Reports and Analysis Centre (AUSTRAC) conducted an audit into Binance, citing limited compliance review, a shortage of local resources, high staff turnover, and more. To tackle the issue, the agency has directed Binance to appoint an external auditor.
