Australia Proposes New Crypto Framework And Pledges Action On Debanking

Australia’s Labor-led government has unveiled a new regulatory framework aimed at bringing crypto exchanges and related services under the country’s existing financial services laws.

The announcement, made by the Treasury Department on 21 March 2025. It marks a significant step toward formalizing oversight of the digital asset industry ahead of a potentially tight federal election expected by 17 May 2025.

Under the proposal, crypto exchanges, custodians, and select brokerage firms involved in trading or storing digital assets will be required to obtain an Australian Financial Services Licence. They will also have to comply with capital requirements and customer asset protection rules, aligning them with traditional financial institutions.

EXPLORE: 10 Best AI Crypto Coins to Invest in 2025

Australia’s Crypto Framework Builds On 2022 Consultations For Tailored Regulation

The initiative stems from a series of consultations launched by the government in August 2022. It is designed to create a tailored regulatory environment for digital assets.

However, the framework won’t apply universally. Smaller platforms that fall below certain size thresholds, as well as blockchain developers and token creators whose assets aren’t considered financial products, will be exempt.

The proposed rules also address stablecoins. Those used for payments will fall under the government’s Payments Licensing Reforms as stored-value facilities, while others—such as some stablecoins and wrapped tokens—will not be subject to the same treatment.

The Treasury clarified that secondary market trading in exempt tokens will not classify platforms as regulated markets.

In a broader commitment to addressing challenges within the sector, Prime Minister Anthony Albanese’s government also pledged to collaborate with Australia’s four major banks to investigate the scope and impact of debanking, a trend where crypto-related businesses lose access to banking services.

Looking ahead, the government plans to introduce an Enhanced Regulatory Sandbox in 2025 to allow startups to test new financial products without full licensing. A review into a central bank digital currency (CBDC) is also on the agenda.

While the Labor government aims to open public consultation on the draft legislation, the upcoming federal election could shift priorities. The opposition Coalition, led by Peter Dutton, has also promised to prioritize crypto regulation if it takes office.

A recent YouGov poll showed the two parties in a tight race, leaving the future of crypto legislation potentially in flux.

EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025

AFP Launches Global Probe as Binance Impersonation Scams Target Australian Crypto Investors

Australian cryptocurrency investors are facing mounting financial losses due to a surge in sophisticated scams, many of which involve fraudsters impersonating Binance, one of the world’s largest crypto exchanges.

The Australian Federal Police (AFP) confirmed on 20 March 2025, that it has launched a global investigation into these schemes, which are becoming increasingly difficult to detect.

According to the AFP, scammers have been contacting victims via SMS, falsely claiming to represent Binance. The messages often create a false sense of urgency, warning recipients of supposed unauthorized access to their crypto accounts.

These fraudulent texts typically contain fake verification codes and a support phone number. When victims call the number, they are instructed to move their assets to a so-called “trust wallet” for security purposes.

In reality, the wallet is under the scammers’ control, and once the transfer is made, the victims lose access to their funds.

EXPLORE: Best New Cryptocurrencies to Invest in 2025

The post Australia Proposes New Crypto Framework And Pledges Action On Debanking appeared first on 99Bitcoins.

Source link