Australia's crypto regulation breakthrough is a win for innovation and economic growth

Treasury commits to bespoke crypto regulation and solving debanking
Government strategy outlines clear frameworks for exchanges and stablecoins
Industry momentum strengthens with bipartisan political support

Special Report: A recent Treasury announcement marks a transformative step forward for Australia’s crypto sector, delivering clarity on regulatory frameworks and addressing critical banking issues.

It’s hard to state how instrumental the Treasury’s recent crypto announcement is for the long-term trajectory of crypto adoption in Australia.

In March, the Treasury revealed that it will share a draft regulatory framework for crypto later this year, representing a major milestone towards mainstream adoption for crypto.

Importantly, it addresses the two biggest issues our industry faces today: developing bespoke crypto regulation and solutions to the debanking crisis.

The Albanese government’s “Statement of Developing an Innovative Australian Digital Asset Industry” sets clear priorities, including establishing frameworks for crypto exchanges and stablecoins, and exploring regulatory flexibility to trial new financial services without immediate ASIC licensing.

These targeted measures promise to mitigate the pervasive issue of debanking, providing regulatory certainty that reassures cautious banks and unlocks the sector’s growth potential.

Clear, tailored regulations (rather than attempting to crowbar crypto into existing frameworks) will remove significant barriers that have hampered industry growth, offering a predictable path forward for investment and innovation.

This is not simply regulatory housekeeping; bespoke regulation will boost local businesses’ confidence, encouraging them to invest in Australian operations, create local jobs, and contribute meaningfully to the national economy.

Crypto is on the agenda for both sides of the political aisle

Sydney Policy Week in March underlined the momentum building in the sector. Meetings with more than 100 industry representatives, politicians, and regulators highlighted a critical turning point: crypto is now firmly on the agenda for politicians of every persuasion. With bipartisan support gaining traction, the next election promises to embed crypto legislation firmly in the economic reform landscape.

This progressive stance towards regulation presents an unparalleled opportunity for Australian global leadership in the crypto industry. Almost a third (31.6%) of Aussie adults hold or have held digital assets, and our own analysis has shown Aussies stand out in their willingness to embrace crypto innovations (and take some measured risk).

Australia is a rich and vibrant crypto market – the implementation of a clear regulatory framework that provides stability for investors will lay the foundation for future growth and ensure Australia is able to keep pace with international leaders in this space.

This article was developed in collaboration with Kraken, a Stockhead advertiser at the time of publishing, and was written by Kraken managing director for Australia and rest of world Jonathon Miller.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.