Clearer crypto laws now a priority as Australia faces global pressure, following the Australian federal election on May 3, 2025, the re-elected Labor Party is under mounting pressure from the crypto industry to deliver on long-awaited digital asset reforms.
With 54.9% of the two-party-preferred vote, the Labor government now has a renewed mandate — and a narrow window — to implement laws that could shape Australia’s role in the global crypto economy.
Crypto leaders, including executives from Coinbase, Binance, and BTC Markets, have made a unified call: Australia must act fast or risk falling behind jurisdictions like the European Union, U.K., and Singapore, which have already introduced clear regulatory frameworks.
Industry Calls for 100-Day Action Plan
The Australian crypto sector isn’t just calling for reform—it’s demanding a timeline. John O’Loghlen, Managing Director of Coinbase Asia-Pacific, urged the government to establish a Crypto-Asset Taskforce within 100 days of re-election. This taskforce would design laws to:
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Protect consumers
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Retain local talent
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Prevent capital flight
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Provide legal clarity for exchanges and platforms
“Australia can’t afford to fall further behind global digital asset regulation. We need swift legislative action, not endless consultation,” O’Loghlen said in a statement to Cointelegraph.
Binance’s APAC legal head, Joy Lam, echoed these concerns. While praising continued dialogue with Australia’s Treasury, Lam stressed that “the time for talk is over.” She warned that further delay could erode Australia’s crypto competitiveness.
Global Momentum Forces Australia’s Hand
Australia’s push for reform comes amid a wave of global regulatory clarity:
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The European Union has already passed MiCA (Markets in Crypto-Assets) — a sweeping framework covering stablecoins, exchange licensing, and asset custody.
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The U.K. Treasury released its draft crypto bill in Q1 2025.
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The U.S. has progressed legislation focused on stablecoins and digital commodities, including oversight for non-securities like Bitcoin.
Australia’s industry stakeholders warn that without similar clarity, startups will migrate to more progressive jurisdictions. Already, Australia has seen projects shift operations to Singapore and the UAE, citing better tax policies and friendlier compliance structures.
“We’re at risk of exporting innovation. Without policy certainty, Australian companies will set up shop elsewhere,” said Caroline Bowler, CEO of BTC Markets, one of the country’s largest local exchanges.
What’s the Government Planning?
According to Treasurer Jim Chalmers’ office, the government plans to release exposure draft legislation for public consultation by mid-2025. The reform package will focus on:
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Licensing regimes for crypto exchanges and platforms
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Custody frameworks for digital assets
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Stablecoin regulation with minimum capital requirements
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Anti-money laundering (AML) and KYC enhancements
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Modernization of the national payments system
The reforms will be phased in to avoid disrupting existing businesses, but industry insiders remain cautious. While Treasury confirmed plans to introduce the legislation before June 30, 2025, skepticism remains over whether the timeline will be met.
“We’ve seen this before. Without clear deliverables and deadlines, crypto regulation keeps getting pushed back,” said Amy-Rose Goodey, Executive Director at Digital Economy Council of Australia (DECA).
Addressing the “Debanking” Crisis
Another major issue plaguing Australia’s crypto sector is debanking, where major banks unilaterally cut services to crypto companies, citing compliance risks. This has crippled local exchanges and payment providers, who often find themselves locked out of basic financial services.
Kraken Australia’s Managing Director, Jonathan Miller, emphasized the need for a “fit-for-purpose licensing regime” to prevent financial exclusion. He noted that traditional banks would continue to view the industry as too risky to serve without legal recognition and oversight.
Industry Response: Positive, But Cautious
The industry has cautiously welcomed the government’s proposed four-pillar regulatory strategy, which includes:
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Exchange licensing
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Digital asset custody
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Token classification and taxation
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Consumer protection and enforcement
Stakeholders praised the pragmatic tone of the proposals. Unlike previous drafts, the new framework acknowledges the need for NFT exemptions, software innovation, and tech-neutral language.
“This is a workable approach. It doesn’t demand a full overhaul of financial regulation, but rather plugs digital assets into what already works,” said Edward Carroll, founder of MHC Digital.
What’s at Stake for Australia?
Australia’s crypto industry contributes to an estimated $2.5 billion AUD in annual economic activity, supporting thousands of jobs in fintech, compliance, blockchain development, and Web3 services.
With global crypto adoption accelerating, the nation has a limited window to catch up.
Failing to act means:
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Loss of startups to crypto hubs like Dubai and Zug
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Reduced tax revenue from a growing digital economy
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Increased regulatory arbitrage and legal grey zones
Acting now means:
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Institutional investment inflow
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Blockchain innovation is grounded in compliance
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Global credibility in fintech and payments
Conclusion: The Clock Is Ticking
The Australian crypto sector has spoken loud and clear: action within 100 days is not a preference—it’s a necessity. As international frameworks surge forward, Australia risks becoming a bystander in the digital asset revolution unless Parliament turns policy into enforceable law.
With industry leaders, global momentum, and election victory all aligned, the time for crypto law reform in Australia is now.
FAQs
1. Why is Australia’s crypto industry demanding urgent regulation after the 2025 election?
With global powers like the EU, UK, and US advancing crypto regulations, Australia risks falling behind. Industry leaders are pressing the newly re-elected Labor government to establish a legal framework within 100 days to retain innovation, attract investment, and protect users.
2. What reforms is the Australian government planning for crypto regulation?
Treasurer Jim Chalmers’ office plans to introduce draft legislation by mid-2025. The reforms include licensing for exchanges, custody laws, stablecoin rules, AML/KYC standards, and modernization of the national payments system.
3. What happens if Australia delays crypto regulation?
Delaying legislation could lead to a talent and capital exodus to crypto-friendly jurisdictions like Singapore, Dubai, or the EU, while increasing legal uncertainty and limiting Australia’s competitiveness in digital finance.
Glossary of Key Terms
Crypto-Asset Taskforce
A proposed working group suggested by Coinbase to rapidly draft regulatory frameworks for digital assets in Australia.
MiCA (Markets in Crypto-Assets)
The European Union’s comprehensive crypto regulation framework covers licensing, stablecoins, and investor protection.
Debanking
When banks terminate relationships with crypto-related businesses due to regulatory uncertainty or risk concerns.
Exposure Draft Legislation
A preliminary version of a bill is shared for public comment before it becomes official law.
Stablecoin
A cryptocurrency pegged to a stable asset like the US Dollar, often used in trading and remittances.
