In the wake of a decisive electoral win on May 3, the Australian Labor Party finds itself at a pivotal juncture in the realm of cryptocurrency regulation. Industry leaders are vociferously urging the newly reelected government to expedite the creation of digital asset legislation to prevent Australia from lagging behind its global counterparts. With the Labor Party capturing 54.9% of the vote, the crypto community’s call to action is clear: time is of the essence.
A Cry for Regulatory Clarity
John O’Loghlen, Coinbase’s managing director for the Asia-Pacific region, has been vocal about this pressing need. On May 5, he emphasized the Albanese Government’s “opportunity and responsibility” to swiftly address crypto regulation. O’Loghlen advocates for the establishment of a Crypto-Asset Taskforce within the government’s first 100 days. The aim? To craft legislation that safeguards consumers while fostering innovation—halt the exodus of talent and capital to more crypto-friendly jurisdictions.
Meanwhile, Binance’s global regulatory head, Joy Lam, underscored the urgency, stating that discussions with Treasury officials have been ongoing since late 2023. “Timing is really quite critical now,” she noted, highlighting the global momentum towards regulatory frameworks. The United Kingdom’s recent draft regulations, the progression of stablecoin bills in the U.S., and the European Union’s MiCA legislation all serve as benchmarks Australia cannot afford to ignore. This mirrors the situation in the U.S., where Congress is preparing for an intense debate over crypto legislation this summer.
Draft Legislation: A Glimpse of What’s to Come?
Treasurer Jim Chalmers’ office has hinted at forthcoming draft legislation within the year, focusing on “regulating digital asset platforms” and modernizing payment systems. However, Lam expresses cautious optimism, unsure if the timeline will adhere to the initially projected schedule. The crypto sector, it seems, remains in a state of hopeful anticipation.
The Labor Party’s previous term drew criticism for its lack of action. Yet, some believe this hiatus might have been a blessing in disguise, allowing for a more measured approach. Unlike the U.S. administration, which took a stringent stance on crypto, Australia’s revised “Statement on Developing an Innovative Australian Digital Asset Industry” from March reflects a more progressive outlook. This document outlines crucial priorities, such as leveraging the Australian Financial Services License (AFSL) regime to regulate digital asset platforms and payment stablecoins. It notably sidesteps the quagmire of decentralized finance platforms, focusing instead on client asset custody by centralized providers.
Navigating the Regulatory Maze
The government’s statement also signals a review of the Enhanced Regulatory Sandbox, designed to foster innovation in digital asset startups. Tokenization opportunities are another focal point. According to Lam, this shift in emphasis signifies that the government is attuned to industry feedback and adapting to the rapidly evolving international landscape.
Dea Markova, policy director at Fireblocks, shares a cautiously optimistic outlook. She notes that much of the groundwork is done, with the government’s willingness to streamline crypto intermediaries’ licensing being a significant development. The Australian Securities and Investments Commission (ASIC) released its own crypto regulation proposals last December, with feedback from these consultations expected to inform the new legislative framework. The UK’s Financial Conduct Authority is also actively seeking public and industry views on crypto regulation, which could provide valuable insights for Australia’s approach.
The draft guidance indicates that NFTs, in-game assets, and memecoins may not be considered financial products—unlike yield-bearing stablecoins or gold-backed tokens, which likely are. This nuanced approach could provide a clearer path for crypto entities operating in Australia.
The Road Ahead: Unanswered Questions
As Australia stands on the cusp of significant regulatory change, the industry collectively holds its breath. The proposed legislation is poised to address debanking issues that have plagued the sector. Lam suggests that a robust licensing framework would mitigate risk and provide banks with the assurance needed to engage with crypto businesses. Yet, additional guidance for banks may still be necessary.
In the coming months, the crypto community will be watching closely as the Albanese Government navigates this complex regulatory landscape. Will they seize the moment and position Australia as a leader in digital asset regulation? Or will uncertainties continue to cloud the horizon? The answers to these questions will shape the future of crypto in Australia—and potentially, the world.
Source
This article is based on: Industry calls for urgent crypto law reforms after Australian election
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
