Australia is taking a major step towards embracing the future of finance, unveiling a comprehensive regulatory strategy for digital assets. In a white paper released by the Australian Treasury, the government laid out a whole-of-government framework to regulate and integrate cryptocurrencies, stablecoins, and tokenised assets into the broader economy.
Inspired by Global Leaders
Australia’s new approach draws inspiration from progressive crypto frameworks in the European Union and Singapore. Rather than a fragmented regulatory structure, the plan directs key agencies—including the Australian Treasury, ASIC, and the Reserve Bank of Australia—to work in tandem.
A central focus is the tokenisation of real-world assets (RWAs) and the development of wholesale Central Bank Digital Currencies (CBDCs) to enhance market efficiency and accessibility.
No Retail CBDC—For Now
While the government has ruled out a retail CBDC, it sees strong potential in a wholesale version for institutional use. Trials are being prepared to test tokenised settlement systems using both CBDCs and stablecoins in wholesale financial markets.
According to the white paper, these innovations could lead to:
- Faster and more automated transactions
- Reduced reliance on intermediaries
- Lower costs
- Improved access to illiquid assets
This reflects a growing global consensus on the potential of blockchain-powered financial infrastructure to streamline legacy systems.
Licensing Framework for Exchanges
Australia plans to introduce a new licensing structure for crypto exchanges, dubbed Digital Asset Platforms (DAPs). These platforms will be subject to financial service obligations, including:
- Capital adequacy requirements
- Mandatory disclosures
- Use of third-party custodians for safeguarding customer funds
This framework aims to bring clarity and accountability to the digital asset sector while ensuring consumer protection.
Tackling De-Banking Challenges
The white paper also addresses a key industry issue: de-banking, where traditional banks cut off services to crypto firms. Australia’s DAP licensing regime is designed to offer risk management assurance to banking partners, enabling smoother cooperation between banks and crypto businesses.
This move aligns with global concerns, including ongoing U.S. debates where lawmakers like Senator Tim Scott are pushing legislation to stop regulators from using “reputational risk” as grounds to deny banking access to crypto firms.
