Australia’s AFSL Rules Target Crypto Exchanges, Stablecoins
Australia’s Treasury has released draft crypto regulations requiring digital asset platforms (DAPs) and tokenised custody platforms (TCPs) to obtain an Australian Financial Services Licence (AFSL). Under the AFSL licence proposal, crypto exchanges must meet conduct standards, custody rules and enhanced disclosures. Firms face penalties of up to A$16.5 million or 10% of annual turnover for serious breaches. Low-value operators processing under A$10 million annually or holding less than A$5,000 per client are exempt. ASIC will oversee compliance. Public consultation runs until 24 October 2025. In parallel, regulators are developing a stablecoin licensing framework. APRA may oversee issuers under a new stored-value facilities regime, while ASIC has licensed AUDM and AUDF and Coinbase plans to add AUDD. Industry leaders welcome the clarity of the AFSL licence and stablecoin framework, citing improved consumer protection, market stability and reduced regulatory uncertainty.
Neutral
The draft AFSL licence and stablecoin regulations provide clarity and a framework for compliance. For crypto exchanges and AUD-backed stablecoins like AUDM, AUDF and AUDD, this reduces regulatory uncertainty and may support long-term adoption. However, as stablecoins are pegged to the Australian dollar, their market value remains stable and less sensitive to regulatory changes. Short-term market reactions may be limited, making the overall price impact neutral.