The Australian government has introduced a groundbreaking cryptocurrency regulation bill that would require exchanges and digital asset platforms to operate under a mandatory licensing regime or face severe financial penalties. The move represents one of the country’s most ambitious steps to bring clarity and accountability to the fast-growing crypto sector, which has long operated in a regulatory gray zone.
According to Deputy Treasurer Daniel Moulina, speaking at the Global Digital Assets Regulation Summit, crypto exchanges that fail to comply with licensing rules could be fined up to 10% of their annual turnover. In addition, violations tied to misleading practices, deceptive conduct, or unfair contract terms could trigger penalties of up to AUD 16.5 million ($10.9 million), three times the benefit gained from the violation, or 10% of yearly revenue—whichever is greater.
Under the new framework, digital asset service providers in Australia will need to secure a financial services license and commit to operating “fairly and honestly.” This includes exchanges, custodial platforms, and operators dealing with tokenized assets. However, the bill introduces exemptions for small-scale operators holding less than AUD 5,000 ($3,298) per client and processing fewer than AUD 10 million ($6.6 million) in annual transactions, easing the compliance burden on smaller businesses.
The legislation has received strong backing from major industry players. Coinbase and Kraken publicly endorsed the proposal, noting that it will foster consumer trust and ensure Australia remains competitive on the global stage. Coinbase APAC director John O’Loghlen emphasized that clear, targeted regulation will support economic growth and expand consumer choice. Similarly, Kraken’s general manager Jonathan Miller welcomed the bill after what he described as a “lengthy consultation process” between industry stakeholders and the government.
Industry experts say the bill reflects Australia’s increasing determination to strengthen oversight of its crypto economy. Earlier this year, AUSTRAC, the national financial intelligence agency, restricted crypto ATM transactions to AUD 3,229 due to concerns over fraud and money laundering. Now, with this new legislation, the government is sending a strong signal that it intends to balance innovation with investor protection.
The draft law is currently open for public feedback until October 24, 2025, giving industry participants a final opportunity to shape the details. If enacted, the regulation could transform how digital asset businesses operate in Australia, positioning the country as a leader in responsible crypto governance.
Conclusion: Australia’s proposed crypto bill marks a turning point for the nation’s digital economy. By combining strict licensing requirements with allowances for smaller players, it aims to protect consumers, prevent abuse, and ensure sustainable growth of the sector. With major global exchanges like Coinbase and Kraken already on board, the legislation could serve as a model for other countries grappling with crypto regulation.
