Australia Proposes New Digital Asset Regulation Law
Australia has proposed new legislation to regulate digital asset platforms. Dubbed the 'cornerstone' of the country's digital asset roadmap, the bill aims to bolster consumer protections and provide clarity for the crypto industry.
The draft law, presented at the Global Digital Asset Regulatory Summit of the Digital Economy Council of Australia, defines two new financial products: Digital Asset Platforms and Tokenized Custody Platforms. Operators will need an Australian financial services license and meet certain consumer protection and management standards.
Small platforms handling less than $5,000 per client and $10 million in annual transactions will be exempt from some rules. The bill also sets out rules for wrapped tokens, public token infrastructure, and staking. Penalties for breaches could reach up to 10% of annual turnover.
The government, working with the Australian Securities and Investments Commission, is planning transitional arrangements for the industry.
Assistant Treasurer Daniel Mulino described the bill as a significant step in regulating the digital asset sector in Australia. The legislation provides regulators with flexibility to adapt their obligations as technologies change, ensuring a robust and evolving framework for digital asset platforms.
