Australian Crypto Industry Calls for Urgent Legislative Action Following Election

Australia’s cryptocurrency and blockchain industry is calling on the newly reelected Labor government to act swiftly on long-promised digital asset legislation, warning that further delays could see the country fall behind other global jurisdictions in crypto innovation and investment.

The Australian Labor Party (ALP), led by Prime Minister Anthony Albanese, secured a decisive victory in the May 3 federal election, winning 54.9% of the two-party-preferred vote against the opposition Liberal and National Parties, which collectively garnered 45.1%.

While both major parties had pledged reforms to digital asset regulation during their campaigns, only the opposition promised to deliver draft legislation within the first 100 days in office.

Now, with the Labor government returned to power, the crypto industry is urging the administration to follow through on its commitments — and quickly.

“Timing is Critical”: Industry Voices Demand Urgency

Speaking to Cointelegraph, Joy Lam, head of global regulatory and APAC legal at Binance, emphasized the urgency of the situation. Binance has been consulting with the Australian Treasury since late 2023 regarding potential legislation, but Lam believes it's time to transition from discussion to action.

“Timing is really quite critical now because obviously it's something that has been discussed and kicked around for quite a few years,” Lam said.

John O’Loghlen, Managing Director for Asia-Pacific at Coinbase, echoed this sentiment. He urged the Albanese government to establish a Crypto-Asset Taskforce within its first 100 days in office to develop legislation aimed at protecting consumers, encouraging innovation, and preventing the continued loss of crypto talent and capital to more progressive international markets.

“This is both an opportunity and a responsibility,” said O’Loghlen. “Other markets are moving quickly, and Australia risks being left behind.”

BTC Markets CEO Caroline Bowler added that the election result provides a critical opportunity for “meaningful progress” in crypto regulation. She described the current moment as a turning point in shaping the country's digital asset framework.

Reelected Prime Minister Anthony Albanese. Source: Anthony Albanese

Global Momentum Puts Pressure on Australia

Other major markets have already made significant strides toward regulating digital assets. The UK released its draft regulations just last week. The United States is advancing multiple stablecoin bills, and the European Union has already implemented its Markets in Crypto-Assets (MiCA) framework, which serves as a comprehensive regulatory guide for the crypto sector.

Lam said the global landscape is evolving rapidly, and Australia must not delay any further.

“There’s a very clear shift. Everyone's moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way,” she said. “So time is really of the essence now.”

Draft Legislation Coming – But When?

A spokesperson for Treasurer Jim Chalmers confirmed to Cointelegraph that the government plans to release exposure draft legislation for public consultation sometime this year. This will include proposals for regulating digital asset platforms and modernizing Australia’s payments systems. Reforms are expected to be phased in gradually to minimize disruptions to existing businesses.

Despite this, industry leaders remain skeptical of the timeline. While the Treasury has indicated that the draft laws could be released by the end of June, Lam remains unconvinced.

“I don't know whether this quarter specifically is still sort of the timeline,” she said.

Interestingly, some argue that the ALP’s previous inaction during its first term may ultimately result in better, more thoughtful legislation. Early proposals that mirrored the Biden administration’s harsher stance on crypto—particularly regarding banks and securities classifications—may have done more harm than good.

Instead, the revised approach signaled by the Treasury’s Statement on Developing an Innovative Australian Digital Asset Industry, released in March, has been welcomed by man

y in the space.

A Shift in Strategy: Existing Frameworks and Industry Input

The March Treasury statement marked a noticeable evolution in the government’s tone. It proposed using the existing Australian Financial Services License (AFSL) regime as the foundation for regulating Digital Asset Platforms (DAPs) and payment stablecoins, focusing on safe custody and centralized providers. Importantly, it avoided tackling the complex and controversial world of decentralized finance (DeFi), for now.

Lam endorsed the AFSL-based approach. “We don't need to reinvent the wheel,” she said. “It’s something that people know and understand. It's a pretty sensible move, and it’s also going to be much easier for regulators to implement.”

This regulatory alignment, coupled with extensive consultations with industry throughout 2023, reflects the government’s growing willingness to engage with stakeholders and learn from other jurisdictions’ experiences.

“They do have the benefit now of looking at what has worked and hasn’t worked in other jurisdictions, and really building on those lessons,” Lam said.

Australia Votes running tally on the Australian election. Source: ABC

Innovation Sandbox and Tokenization Opportunities

The Treasury’s statement also pledged to review Australia’s Enhanced Regulatory Sandbox — a testing environment designed to allow innovative startups to operate with fewer regulatory constraints during early development. Additionally, it highlighted tokenization as a significant opportunity for growth, particularly in areas like real-world assets, finance, and supply chains.

Fireblocks policy director Dea Markovy pointed out that a substantial amount of preparatory work has already been completed, and the government’s new tone is encouraging.

“A lot of the groundwork and research is done,” she said. “What is significant here is the willingness of the government to cut through the complexity and uncertainty on crypto intermediaries licensing.”

ASIC’s Role and Regulatory Clarity

The Australian Securities and Investments Commission (ASIC) has also played a role in laying the groundwork for future crypto legislation. In December 2023, it released INFO 225, its proposed regulatory guidance for digital assets. Feedback from that consultation will help shape the forthcoming laws.

Markovy explained that ASIC’s guidance outlines how different token issuances and crypto intermediation models would fit into Australia’s existing securities framework. It introduces a transition period and clarifies that many tokens — such as NFTs, in-game items, and memecoins — are likely not financial products under Australian law. However, stablecoins offering yield or tokens backed by physical assets like gold would be treated as such.

The Problem of Debanking

The issue of debanking — where crypto businesses are denied access to basic banking services — remains a significant challenge in Australia. Many believe clear, enforceable regulations will help reduce the risk perception among banks and restore access to financial infrastructure for crypto companies.

“What we really want from governments and regulators is that clean licensing framework,” said Lam. “That goes a long way to mitigating the risk and giving the banks the comfort that they need. And then, there’s probably going to need to be some additional guidance given to banks.”

A Rare Second Chance

For now, the ball is in the Labor government’s court. With a clear mandate and growing pressure from both domestic stakeholders and international regulatory trends, the Albanese administration has a rare second chance to establish Australia as a forward-looking hub for digital asset innovation.

As Joy Lam summarized, “The world isn’t waiting. If we want to be leaders in the digital economy, the time to act is now.”