The Australian government has announced a new regulatory framework for cryptocurrency and digital assets, set to be implemented in 2025. This initiative aims to modernize the financial system by integrating digital assets, addressing debanking issues, and fostering innovation while ensuring consumer protection.

The framework will regulate crypto exchanges, custody services, and brokerage platforms under existing financial services laws, requiring operators to obtain an Australian Financial Services License and meet compliance standards such as safeguarding customer assets and maintaining minimum capital requirements.

A key focus of the framework is tackling debanking challenges faced by crypto businesses. The government plans to collaborate with Australia’s four largest banks to understand better the extent of debanking and its impact on the industry.

Additionally, the plan includes pilot programs for tokenized money, such as stablecoins, and a review of central bank digital currencies (CBDCs). While retail CBDCs are ruled out for now, wholesale CBDCs are being explored as a means to enhance market efficiency and settlement processes. 

Smaller-scale platforms and blockchain software developers not involved in financial services will be exempt from licensing requirements. The government also plans to launch an Enhanced Regulatory Sandbox in 2025, allowing businesses to test new financial products without needing a license.