Treasurer unveils cryptocurrency reforms to protect Australians who own digital assets

Australia’s crypto crackdown is starting to take shape with the government revealing the next steps in its bid to regulate the digital currency.

The treasurer, Jim Chalmers, unveiled his proposal to make crypto exchanges and digital asset platforms subject to existing Australian financial services laws.

The government is also proposing to make platform operators obtain an Australian financial services licence.

Platforms that hold over $1,500 of an individual’s assets or $5m in aggregate will be covered by the changes.

Minimum standards for digital assets such as tokens are also being reviewed.

About a quarter of Australians own some sort of crypto.

Online platforms hold billions of dollars in assets and expose Australians to significant risks, the proposal paper says.

“Collapses of digital asset platforms, both locally and globally, have seen Australians lose their assets or be forced to wait their turn amongst long lines of creditors,” it says.

“These reforms seek to reduce the risk of these collapses happening, by lifting the standard of their operations and increasing their oversight.”

Chalmers said the government was moving “decisively and methodically to ensure that consumers are adequately protected and innovation can flourish”.

Feedback on the proposal paper closes 1 December and consultation for draft legislation will continue next year.

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