ASIC proposes new crypto licensing rules for Australia
Feedback on the proposals is being sought, with final guidance anticipated by mid-2025.
Australia’s corporate regulator has proposed significant changes to crypto regulation, requiring most firms dealing in digital assets to obtain costly licences. The Australian Securities and Investment Commission (ASIC) aims to classify many crypto assets as financial products, subjecting exchanges and other platforms to the Australian Financial Services Licence (AFSL) and Market Licence frameworks.
While larger companies may adapt to the changes, smaller firms and startups face challenges due to increased compliance costs. Some experts warn this could lead to an exodus of crypto innovators to offshore markets. Joni Pirovich, a crypto lawyer, noted that the new rules make launching in Australia as costly as overseas operations, leaving local startups at a disadvantage.
Despite these concerns, industry leaders see the guidance as a step towards much-needed regulatory clarity. ASIC Commissioner Alan Kirkland stressed the importance of consumer protection and market integrity while promoting responsible innovation. The regulator is seeking feedback on the proposed rules, with final guidance expected by mid-2025.
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