Australia Seeks Licensing of Crypto Exchanges Via Digital Services Act

The Liberal Party of Australia is seeking industry feedback over its efforts to legislate a licensing regime for crypto exchanges

article-image

Australian Parliament in Canberra | Source: Shutterstock

share
  • The proposed legislation is a consolidation of reforms set forth in a final report from a Senate Committee in December
  • The Australian Government has announced its Digital Services Act, which seeks to regulate the budding crypto industry

Australia is pushing ahead with its plans to regulate digital assets and is seeking industry feedback on measures that focus on custody, DAOs, taxation, licensing and issues of industry debanking via the government’s Digital Services Act.

Calling for consolidation of reforms laid out in a final report of a Senate Committee last year, Australian Liberal Party Sen. Andrew Bragg said the Digital Services Act would provide greater regulatory oversight while dissuading businesses from exploring their options overseas.

“To do this would make Australia one of the only jurisdictions confronting this issue head-on, signalling that we fully appreciate the promise and potential of blockchain technology,” the senator said during his opening remarks at the country’s annual Blockchain Week.

The Senate Select Committee on Australia as a Technology and Financial Centre, which submitted its findings in a final report in December, received and reviewed a bevy of submissions and consulted on a number of issues with industry experts including certain instances of debanking of crypto businesses.

As part of its efforts, the government said Sunday it has released a consultation paper asking the industry to comment by the end of the month for its proposed cryptoasset licensing and custody measures. The paper also touches on the first stage of a token mapping exercise that is expected to be completed by the end of this year.

“We have been in active consultation with the federal government and agencies throughout this process and are very pleased to hear of a market licensing and custody requirement for Australia,” Caroline Bowler, CEO of crypto exchange BTC Markets, said. “This commitment pushes Australia into a leading position within a global regulatory environment and levels the playing field internationally.”

Crypto taxation is also a major focus of the government’s proposed legislative package which released the Terms of Reference on Sunday that tasks the country’s Board of Taxation with reviewing the nation’s crypto tax landscape.

The board will consider the current tax climate as it relates to digital assets, understand the characteristics of the nascent asset class, compare the existing framework to that of comparative jurisdictions and consider whether it would be appropriate to make any changes at all.

Its review, which is expected to be concluded no later than Dec. 31, is being conducted on the basis it would “not increase the overall tax burden” for investors, the government said.

Under the proposed tax reform, the Liberal Party is also seeking to bring DAOs (decentralized autonomous organizations) under the fold of the Corporations Act.

“Given that DAOs are recognised as partnerships, not companies, they are not liable to pay company tax,” the senator said. “DAOs are an existential threat to the tax base. They must be recognised and regulated as a matter of urgency.”

The upcoming federal election is expected to be called sometime before May 21 and will pit the incumbent party against its rival, the Australian Labor Party.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /