In 2025 our federal politicians have renewed their focus on regulating cryptocurrency in Australia, following strong market gains that have heightened consumer interest in the asset class. With the federal election now behind us, the new government has stated it plans to introduce draft legislation into Parliament within months.
Having been inside Parliament House in Canberra with clients over recent months, I have observed a clear bipartisan recognition of the need to regulate the sector. Our politicians are wanting to harness innovations in the areas of tokenisation, stablecoins and improved payment systems.
For example, some of our politicians have expressed interest in the possibility of firms tokenising stocks. This would allow Australians to trade 24/7 by utilising blockchain technology. They could then sell their shares and use the funds, in the form of cryptocurrency, to purchase everyday goods and services.
When the Australian Securities and Investments Commission released Info Sheet 225 in November 2024, the government and opposition shared a mutual view it was too overreaching. It was acknowledged the strict licensing requirements would stifle potentially innovation, do little to protect consumers and make it less efficient for businesses.
There is a clear view amongst our clients that overregulation risks pushing firms offshore, deterring institutional investors and leaving financial advisers unable to engage with crypto. They believe this will ultimately hold Australia back from having crypto sit alongside traditional finance.
This led to the Federal Government releasing its framework for reform in March 2025, which removed the requirement for companies to hold a market operating licence. As it stands, only two companies in Australia have one and it took them around five years to establish.
Post election, the Prime Minister has also appointed a dedicated portfolio for the digital economy, led by Dr Andrew Charlton MP, an advocate for the sector with a background in the financial services industry. As Assistant Minister for the Digital Economy, we expect Charlton to take the lead on draft legislation, with the support of Treasurer Jim Chalmers MP and newly appointed Minister for Financial Services Daniel Mulino.
Almost one in three Australians owns cryptocurrency, so when it comes to regulation, our clients are looking to get the balance right between harnessing innovation and providing guardrails for market operators, while ultimately protecting consumers.
To find out more about how Honner can support your business in the digital assets sector, contact Jared Wright – Jared@honner.com.au