Chalmers outlines digital and crypto asset regulation plan
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The news: The federal government wants to regulate crypto and digital asset platforms under existing financial laws, according to a proposal released today. Digital asset platforms will require an Australian Financial Services Licence and be subject to minimum standards for holding tokens, custody software and transacting in tokens.
The numbers: Platforms that hold $1500 of an individual's assets or more than $5 million in total would be subject to the laws. About one in four Australians own some form of crypto asset. Just under 30,000 Australians lost amounts ranging up to $1 million after FTX Australia went into administration following the collapse of its US counterpart in November 2022.
The context: Liberal Senator Andrew Bragg accused the federal government of dragging its feet on cryptocurrency regulation and abandoning the former government's regulatory process, saying today's proposal paper was a rehash of a consultation from March 2022.
What they said: "The Albanese Government is acting methodically to ensure that consumers are adequately protected and innovation can flourish," Treasurer Jim Chalmers said in a statement.
"Labor’s statement on crypto today concedes there will be no crypto laws in the life of this Parliament," Liberal senator Bragg said in a media release.
The sources: Treasury Media Release, Andrew Bragg Media Release
