Coinspeaker
Australia’s Crypto Regulation Framework Includes Digital Assets, Tokenization, and CBDCs

The Australian government under the leadership of Prime Minister Anthony Albanese has introduced a new crypto regulatory framework with the plan of integrating digital assets into the broader economy. 

A whitepaper from the Treasury outlines plans for real-world asset (RWA) tokenization and the development of central bank digital currencies (CBDCs) to modernize the country’s financial system.

New regulations will apply to crypto custody services, exchanges, and other brokerage firms operating in the space.

These new regulations will also enforce compliance with financial service standards, such as safeguarding customer assets, obtaining an Australian Financial Services Licence, and meeting minimum capital requirements. The Treasury Department said:

“Our legislative reforms will extend existing financial services laws to key digital asset platforms, but not to all of the digital asset ecosystem”. 

The Australian government has ruled out any plans for a retail CBDC, and will instead proceed to build a wholesale CBDC version along with building a tokenized assets infrastructure. This will help to unlock market efficiency and access to broader assets globally. 

Plans are also in place for pilot trials using tokenized money, including stablecoins, to facilitate transactions in wholesale tokenized markets. 

These trials will involve collaboration with the Reserve Bank of Australia, the Australian Securities and Investment Commission, and the Australian Treasury. The whitepaper reads: 

“Markets for tokenized assets may be able to increase automation, reduce settlement risk, lessen reliance on multiple financial intermediaries, simplify trading processes, reduce transaction costs, and provide broader access to traditionally illiquid assets”. 

Under the Australian government’s Payments Licensing Reforms, stablecoins will be treated as a type of stored-value facility. However, wrapped tokens and certain kinds of stablecoins would qualify for exemption. 

The Albanese government has pledged to collaborate with Australia’s four largest banks while gaining deeper insights into the prevalence and the impact of de-banking practices. This initiative aligns with broader efforts to ensure fair access to banking services for crypto-related businesses.

The move comes as global attention on de-banking intensifies. In the U.S., Senator Tim Scott’s FIRM Act aims to prevent regulators from citing “reputational risk” as a reason to deny banking access to crypto firms.

The whitepaper outlines a licensing framework for crypto exchanges, referred to as Digital Asset Platforms (DAPs) by the Australian government.

DAP operators will be required to meet financial service standards, including disclosure obligations, capital adequacy, and the use of third-party custodians for customer asset storage. To address industry concerns, the government plans to incorporate anti-de-banking measures into the DAP licensing framework.

Australia’s Crypto Regulation Framework Includes Digital Assets, Tokenization, and CBDCs

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