Australia Crypto Draft Laws Aim to Regulate Digital-Asset Platforms

Australia’s government has introduced new draft laws for digital-asset platforms, reports Cointelegraph. The crypto industry seems to welcome the move as a step toward regulation and security. However, experts warn that unclear definitions in the draft could cause confusion, slow innovation and make it harder for smaller platforms to comply.

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— Cointelegraph (@Cointelegraph) October 27, 2025

Overview of the Draft Laws

The draft legislation requires digital-asset platforms to get an Australian Financial Services Licence (AFSL) from ASIC. This aligns crypto platforms more closely with traditional finance. Platforms must follow established compliance rules, similar to banks and financial institutions.

Smaller exchanges are not required to get a license. Platforms with yearly volumes under $6.5 million or average customer deposits below $3,300 do not have to apply for a licence. This approach aims to balance regulation with support for smaller operators.

Industry Reaction: Positive but Cautious

The response from the crypto industry has been mostly positive. Kate Cooper, CEO of OKX Australia, said the draft laws show that crypto is becoming part of the mainstream financial system. She noted, however, that implementation will be key. Unlicensed operators could still compete unfairly if rules are not clear.

Liam Hennessy, a partner at Thomson Geer, praised the draft as a fair approach. He said it could help Australia become a trusted hub for digital assets. At the same time, the laws stay away from the strict rules used in Europe and the confusing rules in the United States.

Concerns Over Vague Definitions

Despite support, some experts worry about unclear terms in the draft. Definitions of certain crypto services are not accurate. This could create confusion among regulators and operators. Startups and smaller platforms might struggle to understand their obligations. Experts warn that vagueness could slow innovation or make compliance harder.

Next Steps: Industry Consultation

The government has opened a consultation period where stakeholders can provide feedback and suggest changes to the draft. This period allows lawmakers to refine the rules, while the goal is to create a clear and fair framework. The outcome will shape how the crypto sector grows in Australia.

Industry groups are expected to push for definitions that support innovation. They want rules that keep users safe while allowing startups to thrive. Regulators aim to balance safety and opportunity in a rapidly changing market.

Australia’s Crypto Future

Australia’s crypto draft laws show that the government is serious about regulating digital-asset platforms. Most of the crypto industry supports the effort. Still, the success of the laws will depend on how clear and practical the rules are.

If regulators address vague terms, Australia could become a leading country for crypto innovation. The consultation period is key, and will decide whether the laws protect users while supporting growth in the digital-asset sector.