Australia announces new crypto regulations pledge to solve debankization problems

PANews March 21 news, according to Decrypt, the government led by Australian Prime Minister Anthony Albanese outlines a new digital asset regulatory framework designed to provide industry players with greater certainty while addressing risks associated with consumer protection and market integrity. The reform will require major cryptocurrency platforms to obtain Australian financial services licenses, while exempting small-scale businesses and companies that do not involve financial services. The Australian Ministry of Finance issued a statement document on Thursday’s “Developing the Innovative Australian Digital Assets Industry” details plans to regulate digital asset platforms and payment of stablecoins under current financial services laws. “By aligning with international best practices, Australia can enhance the global competitiveness of the digital asset industry,” the document reads.

The proposed framework will apply to cryptocurrency exchanges, custodial services, and specific brokerage platforms that facilitate transactions and storage of digital assets. Companies that provide tokenized storage value facilities, including some stablecoin issuers, will also be subject to licensing and compliance obligations. However, companies that create or use digital assets, develop software, or maintain digital asset infrastructure for non-financial purposes will not be subject to the new regulations.

The government also acknowledged that debanization (i.e., financial institutions restrict services to cryptocurrency companies) is an increasingly serious problem. The new licensing system aims to improve risk management and transparency within the industry, which may reduce debanking behavior by major financial institutions. "The government has been working with stakeholders to ensure transparency and equity, including engagement with major Australian banks to understand the extent of debanization," the document reads.