Australia Launches Innovation-Focused Crypto Framework with Consumer Protection at Its Core

CANBERRA — The Australian government, led by Prime Minister Anthony Albanese, has rolled out a new regulatory framework for digital assets that aims to balance innovation with strong consumer protections.

Unveiled by the Australian Treasury on Friday, the framework introduces reforms that extend existing financial services laws to key areas of the crypto industry—specifically platforms offering digital asset exchange, custody, and brokerage services.

Treasurer Jim Chalmers, Assistant Treasurer Stephen Jones, and Cybersecurity Envoy Andrew Charlton emphasized that while digital assets offer vast opportunities for economic growth and financial innovation, proper oversight is critical for safety and trust.

The updated regulations will require digital asset platforms to secure an Australian Financial Services Licence (AFSL). However, small businesses and firms outside the financial sector will be exempt from this requirement.

The government also announced plans to consult stakeholders before implementing the reforms, with draft legislation expected later this year for public feedback.

Beyond regulation, the Treasury also signaled its interest in emerging technologies such as tokenization, real-world asset (RWA) integration, and central bank digital currencies (CBDCs). In partnership with the Reserve Bank of Australia (RBA), trials are set to explore the utility of tokenized money, including stablecoins and a potential Australian dollar CBDC.