Australia Proposes Crypto Regulation framework

Australia has released draft legislation to regulate digital asset platforms, proposing a framework that extends financial services laws to crypto businesses in an effort to bolster consumer protections and provide clarity for the industry.

assistant Treasurer Daniel Mulino announced the reforms on Wednesday at the Digital Economy Council of Australia’s Global digital Asset Regulatory Summit.

He described the bill as the “cornerstone” of the government’s digital asset roadmap published in March, and saeid it would align Australia with international peers.

“This is about legitimizing the good actors and shutting out the bad,” Mulino said. “It is about giving businesses certainty and consumers confidence.”

The draft introduces two new categories under the Corporations Act: digital asset platforms and tokenized custody platforms.

Operators would need an Australian financial services license and be required to manage conflicts of interest, provide dispute resolution systems, and meet minimum custody and settlement standards.

Reuters reports that the legislation also addresses stablecoins and will grant the government powers to designate certain digital assets as subject to additional regulation.

The public has until September 22 to provide feedback on the draft legislation,with the government aiming to introduce the bill to Parliament later this year.