Australia just sent shockwaves through the crypto world. In a move that could reshape the industry overnight, the Albanese Government released draft legislation. This legislation is designed to bring crypto exchanges under the same rules as traditional financial institutions. Assistant Treasurer Daniel Mulino described it as the “cornerstone” of the nation’s digital asset roadmap. This signals that the era of lightly regulated platforms is coming to an abrupt end.
For years, Australian crypto exchanges only needed to register with AUSTRAC. This allowed hundreds of operators, many inactive, to operate with minimal oversight. That’s all about to change. This draft law isn’t a minor adjustment; it’s a seismic shift. It promises to protect consumers, legitimize trustworthy platforms, and clamp down on bad actors. Indeed, Daniel Mulino’s initiatives are central to these sweeping changes.
The message is clear: crypto in Australia will never look the same again, and the industry is bracing for impact.
Two Groundbreaking Financial Product Categories
The legislation introduces a bold twist: the creation of two entirely new financial product categories. These are named “digital asset platforms” and “tokenized custody platforms” under the Corporations Act. Exchanges providing these services will now need an Australian Financial Services License (AFSL). This places them under the same regulatory scrutiny as banks.
Mulino emphasized that the draft law is not one-size-fits-all. It includes targeted rules for public token infrastructure, wrapped tokens, and staking. Additionally, it sets obligations for securely holding and settling digital assets. Operators who fail to comply could face fines up to $10.8 million or 10% of annual turnover, whichever is higher. It’s a comprehensive approach by Daniel Mulino to ensure fair regulation.
However, not every platform will be caught in the regulatory net. “Low-risk” exchanges holding under $3,300 per customer or facilitating less than $6.6 million annually will be exempt. This approach aims to balance robust oversight with room for smaller players to innovate. Moreover, it keeps the market on edge and investors curious about the fallout. Daniel Mulino’s strategy considers both consumer protection and innovation.
Industry Reacts: Optimism Mixed With Caution
Despite the heavy-handed rules, Australia’s major crypto exchanges are surprisingly supportive. Swyftx CEO Jason Titman called the law “sensible and thoughtful,” praising the government for balancing innovation with consumer protection. OKX Australia’s Kate Cooper warned that enforcement will be the true test, ensuring licensed operators aren’t undercut by unregulated competitors. The involvement of Daniel Mulino gives confidence to many stakeholders.
Crypto.com’s Vakul Talwar hailed the draft as “long overdue,” appreciating its focus on protecting users without imposing unnecessary red tape. Kraken Australia’s Jonathon Miller highlighted the importance of avoiding a blanket approach that could stifle competition or disadvantage smaller innovators.
Mulino confirmed the legislation is still in draft form, with public consultation open until October 24. This keeps the crypto community on tenterhooks as it speculates on the final shape of the law.
Why Everyone Should Pay Attention
This is more than just regulatory housekeeping—it’s a pivotal moment for Australia’s digital economy. The law could legitimize responsible operators, increase consumer confidence, and attract institutional investment, or it could inadvertently push innovation offshore.
Either way, the countdown is on. Crypto exchanges, investors, and everyday users must watch closely. Australia is positioning itself to redefine the rules of the digital asset world. The stakes are high, and the suspense is real. By the end of the consultation period, the Australian crypto market could look completely different. Keep an eye on Daniel Mulino’s developments to understand the potential impact fully.
