(4 December 2024 – Australia) The Australian Securities and Investments Commission (ASIC) is considering a comprehensive overhaul of rules governing the cryptocurrency sector.
The proposed changes would require cryptocurrency exchanges and firms promoting investments in digital assets to obtain financial services licences, marking a significant shift in the regulatory landscape.
ASIC has suggested introducing a prosecution “safe harbour” for start-ups that apply for licences promptly. However, assets like bitcoin, ethereum, and other commodity-like cryptocurrencies would remain outside the scope of these new regulations.
ASIC is also proposing a broader definition of what constitutes a financial service within the crypto sector. This expansion would encompass stablecoins—cryptocurrencies pegged to fiat currencies—and staking services, where investors earn rewards for pledging their holdings to secure blockchains.
The regulator says these measures are being introduced in response to increasing demand for regulatory clarity. As digital assets mature as an investment class and gain mainstream acceptance, clearer rules are needed to protect investors and foster market stability.
“Cryptocurrencies have rapidly evolved, and our regulatory approach must adapt to ensure investor confidence and industry accountability,” an ASIC representative stated.
The market anticipates a favourable climate for cryptocurrencies with Donald Trump’s return to the White House. The president-elect has pledged to support cryptocurrency use and minimise regulatory interference, which is expected to bolster the sector. Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), has confirmed plans to step down once Trump assumes office. Gensler previously initiated lawsuits against major crypto exchanges, including Coinbase.
ASIC plans to outline its proposals in an updated version of Information Paper 225. Despite gradually increasing its oversight, the crypto market has remained largely unregulated under Australia’s existing corporations and markets laws, creating ambiguity for investors. These reforms aim to close that regulatory gap while enabling the sector to innovate responsibly.