Australia’s crypto industry has voiced support for the government’s draft legislation regulating digital asset platforms, but industry leaders say the proposal still lacks clarity on key points.
The Treasury’s consultation, which closed Friday, marked the end of public feedback on a bill that would extend existing financial laws to crypto exchanges and custodians.
Former BTC Markets CEO Caroline Bowler said the initiative is a positive step but warned that “structure must come with clarity.”
Push for Simplicity and Defined Powers
The draft introduces two new financial classifications — digital asset platforms and tokenized custody platforms — both requiring licensing under the Australian Securities and Investments Commission (ASIC).
Exchange Swyftx argued that the framework gives regulators too much discretion and leaves platforms uncertain about their obligations. The company urged the Treasury to clarify ASIC’s authority and add a guiding statement on how future regulation should be interpreted.
CloudTech Group’s Mandy Jiang called the proposal “a significant step forward,” but said too many critical details — such as custody and licensing standards — are deferred to ASIC’s future guidance.
Market and Advice Restrictions Raise Concerns
Industry players also highlighted gaps around offshore liquidity access and financial advice. Swyftx said local exchanges risk losing competitiveness if they cannot interact with global markets and criticized limits that stop licensed advisers from directly advising on crypto assets.
Swyftx CEO Jason Titman said the firm supports regulation under financial law but wants “a fair balance between consumer protection and competitiveness.”
Timeline and Outlook
Most stakeholders expect the legislation to pass by 2026, though some believe further consultation could delay the process. Crypto.com’s Vakul Talwar urged the government to “keep its foot on the accelerator,” while MHC Digital Group’s Edward Carroll cautioned that meaningful work remains to turn the feedback into a workable bill.
Despite differences over timing, the sector agrees on one thing: regulation is needed, but it must be clear, consistent, and practical enough to help the industry grow.
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Reporter at Coindoo
Source: https://coindoo.com/australias-digital-asset-bill-wins-approval-but-needs-refinement/