Australia’s financial watchdog seeks stiffer rules for crypto exchanges ahead of licensing deadline
Australia's financial regulator, ASIC, is proposing stricter licensing and compliance rules for cryptocurrency exchanges to align them with traditional financial standards. The move follows historical industry collapses and aims to protect investors through better asset safeguarding.
Why it matters
This represents a significant shift toward formalizing crypto regulation in Australia, mirroring global trends in financial oversight.
The Australian Securities and Investments Commission (ASIC) said it opened a consultation on the rules on Thursday, which would require affected firms to obtain or update their regulatory approval or license. The consultation closes on Nov. 27, with final guidance and standards expected in March 2027.
The proposals mark the next step in Australia’s effort to bring crypto businesses under the same regulatory framework as traditional financial firms. Parliament passed the legislation in April, joining jurisdictions such as the European Union, Singapore and Hong Kong, which have introduced dedicated crypto regulations.
Australia's move comes years after the 2022 collapse of FTX left about 30,000 Australian customers unable to access their money. Three years earlier, Cryptopia, an exchange in neighboring New Zealand , went bankrupt after a major hack.
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