Developing an Innovative Australian Digital Asset Industry

Treasury has released a statement announcing the Government’s intention to work with ASIC and industry in developing legislative reforms which will extend existing financial services laws to key digital asset platforms, but not to all of the digital asset ecosystem. This approach is informed by action in jurisdictions such as the European Union (EU) and Singapore.

The four primary elements to Australia’s approach to digital asset reforms are:

• A framework for Digital Asset Platforms (DAPs), which are online platforms that hold digital assets, such as crypto, for consumers.

• A framework for payment stablecoins, which will be treated as a type of Stored-Value Facility (SVF) under the Government’s Payments Licensing Reforms.

• Undertaking a review of Australia’s Enhanced Regulatory Sandbox.

• A suite of initiatives to investigate ways to safely unlock the potential benefits of digital asset technology across financial markets and the broader Australian economy.

The statement notes the Government intends to release draft legislation in 2025 for public consultation.