Australian Crypto Industry Urges Swift Action on Digital Asset Legislation After Labor’s Re-Election

Australia’s cryptocurrency sector is pressing the newly re-elected Labor government to prioritize digital asset legislation without delay, warning that the country risks falling further behind global leaders in the blockchain space if reforms are not fast-tracked.

Following a decisive victory on May 3, the Australian Labor Party (ALP) retained power with 54.9% of the two-party-preferred vote, comfortably outpacing the Liberal and National coalition's 45.1%. While both major parties supported regulatory reform for cryptocurrencies, only the opposition had committed to delivering draft legislation within its first 100 days.

Now, with Labor firmly in control, industry leaders are calling for urgency. John O’Loghlen, APAC Managing Director at Coinbase, emphasized the importance of immediate action. Speaking on May 5, he said the Albanese government now has both “an opportunity and a responsibility” to act fast. He recommended establishing a Crypto-Asset Taskforce within 100 days to develop a framework that safeguards consumers, fosters innovation, and halts the migration of blockchain talent and capital to more proactive markets.

Binance’s Head of Global Regulatory and APAC Legal, Joy Lam, echoed those sentiments. She revealed the company has been actively working with Australia’s Treasury since late 2023 and believes the time for talk has passed. “The timing is critical,” Lam said on May 2. “This has been on the table for years, we need decisive movement now.”

Albanese Government Faces Mounting Pressure as Global Peers Move Ahead

Industry insiders are becoming increasingly concerned that Australia could be left behind. BTC Markets CEO Caroline Bowler remarked that the election outcome opens the door for real regulatory advancement. Lam pointed to the UK's recent release of draft crypto laws, ongoing progress on stablecoin legislation in the U.S., and the European Union's already-active MiCA framework. “There’s a global shift,” Lam said. “Everyone is laying the groundwork for sustainable industry growth, and we can’t afford to waste any more time.”

Crypto Legislation Expected Within Months, but Skepticism Remains

Treasurer Jim Chalmers' office has confirmed that a draft exposure bill will be presented later this year for public consultation. Any changes would be introduced in phases to reduce disruption for current businesses. Scheduled for release by June’s end are proposals on “digital asset platform regulation” and “payments system modernization.” However, Lam is uncertain about whether the timeline will be met, citing possible delays.

Critics have accused the ALP of inaction during its previous term, though others argue that this may have avoided rushing into legislation modeled on the U.S. approach, which has often been hostile to crypto, particularly under the Biden administration’s stance on crypto-related banking and its classification of most digital assets as securities.

Since 2023, there has been a notable shift in the Australian government’s tone. What started with cautious proposals ended with a more optimistic Treasury statement in March 2025, titled “Developing an Innovative Australian Digital Asset Industry.” This document outlined foundational principles for crypto regulation, including the use of the Australian Financial Services License (AFSL) regime to oversee centralized platforms and payment stablecoins, while deliberately sidestepping decentralized finance (DeFi) for now.

Embracing Existing Frameworks for Smart Regulation

Lam welcomed the plan to integrate digital assets within the AFSL system. “There’s no need to reinvent the wheel,” she said. “The AFSL is a familiar, trusted framework. Leveraging it makes regulatory implementation far more straightforward for both industry and oversight bodies.”

The government is also revisiting the Enhanced Regulatory Sandbox, designed to allow blockchain startups to innovate without excessive red tape. Tokenization was another major focus in the Treasury's report, signaling growth opportunities in asset digitization.

According to Lam, the government's shift reflects meaningful industry consultation and an understanding of evolving international standards. “They’re learning from what other countries have done right and wrong,” she said.

Industry Optimism Grows, But Details Still Unclear

Dea Markova, Policy Director at Fireblocks, noted that much of the necessary groundwork has already been done. “We’re seeing positive momentum,” she said, though she acknowledged that many details about the upcoming Digital Asset Platforms (DAPs) regime remain uncertain. What stands out, according to Markova, is the government’s commitment to simplifying the complex landscape around licensing crypto intermediaries.

In December, the Australian Securities and Investments Commission (ASIC) published INFO 225, its guidance on crypto asset regulation. Feedback from that consultation will play a key role in shaping the new legal framework.

Markova explained that this draft guidance suggests certain digital assets, such as NFTs, in-game tokens, and memecoins, likely won’t be classified as financial products (Australia’s equivalent to U.S. securities). However, yield-bearing stablecoins and gold-backed tokens probably will.

Debanking Still a Challenge, But Regulation Could Offer a Solution

Another pressing issue highlighted by the Treasury is the ongoing “debanking” of crypto businesses, a practice where banks sever ties with crypto firms. Lam believes clear regulation could resolve this problem. “A transparent licensing framework will reduce risk and make banks more comfortable working with legitimate crypto businesses,” she explained. Still, additional guidance may be needed to help financial institutions adapt.

The Albanese government is now at a crucial crossroads. The crypto industry is urging swift legislative action to provide regulatory clarity and establish Australia as a leader in blockchain innovation. With other nations surging ahead, the next few months could define Australia’s digital asset future, whether as a global trailblazer or a market left playing catch-up. M