We need a fit-for-purpose framework for stablecoins
Australia has laid the groundwork for digital asset reform. The next step is clear, payments-aligned rules for stablecoins.
Australia has taken an important first step in regulating digital assets. The passage of the initial tranche of payments and digital asset reforms through federal parliament is providing long-overdue clarity for platforms and custody providers, while also increasing protections for investors.
While these foundational regulatory measures are welcome, the government must now turn its attention to fit-for-purpose regulation for stablecoins and the payment processes that support digital asset transactions.
Our industry needs this certainty. Clear regulation would allow compliant issuers to scale with confidence, attract more institutional partners and compete internationally under a framework designed for digital money, rather than forcing us to adapt to legacy systems.
Bringing digital assets under the AFSL framework is appropriate for regulating the “rails” of the digital asset ecosystem, including custody providers, platforms and payment services. However, stablecoins were never designed to operate within existing payment rails and Australia’s regulatory frameworks have simply not kept pace with innovation.
