Following their sweeping victory in the May 2025 federal election, the Australian Labor Party (@AustralianLabor), armed with a fresh mandate and renewed confidence, is charging ahead with plans to bring digital asset regulation into... well, 2025. In April 2025, the Treasury released its Statement on Developing an Innovative Australian Digital Asset Industry, outlining a reform agenda widely seen as the most significant overhaul of crypto regulation in the country’s history. Drawing on lessons from global leaders like Singapore’s MAS framework and the EU’s Markets in Crypto-Assets (MiCA) regulation, the statement signaled a more holistic and consultative direction than previous proposals.
The Labor government’s approach targets key problem areas while paving the way for long-term industry growth:
Bringing Exchanges into the Fold: Crypto platforms will be required to obtain an Australian Financial Services Licence (AFSL) - a proportionate step compared to a full market license, aligning with recommendations from industry groups such as @DECAustralia .
Taming the Stablecoin Wild West: The new rules will regulate payment-focused stablecoins under an enhanced Stored-Value Facility (SVF) regime, mirroring structures seen in Hong Kong and the UK.
Smart Exemptions for Innovation: Treasury proposes tailored compliance paths for non-financial tokens and low-risk digital asset projects, avoiding the one-size-fits-all trap that has stifled startups in other jurisdictions.
Turbocharged Regulatory Sandbox: The existing @asicmedia sandbox will be expanded and streamlined, allowing fintech and crypto innovators to test products in a controlled environment with fewer licensing burdens.
Tackling the Debanking Crisis: With more than 90 crypto businesses reporting account closures over the past three years the government is pledging to enforce clearer banking access standards and strengthen appeal rights for affected businesses.
Industry bodies like @DECAustralia and Digital Finance CRC have praised the government's shift away from ad hoc enforcement toward principles-based, predictable regulation.
Treasurer Jim Chalmers (@JEChalmers) confirmed that draft legislation will be circulated for public comment by Q3 2025, with final rules expected to roll out gradually across 2026.
With global players increasingly drawn to regulatory clarity, the Albanese government’s reforms could transform Australia from a regulatory laggard into a sandbox for innovation. If implemented as planned, these reforms could create an export-ready digital asset industry and cement Australia’s place on the fintech map.
Who's ready?
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