Australia announces new encryption regulations, promising to combat "de-banking" behavior

The Australian Albanese government has announced new regulations targeting cryptocurrency exchanges and stablecoins, aiming to curb the phenomenon of "debanking". Under the leadership of Prime Minister Anthony Albanese, the Australian government has developed a new regulatory framework for digital assets, aimed at providing greater certainty for industry participants while addressing risks related to consumer protection and market integrity. The reform requires major crypto platforms to obtain an Australian financial services license, while small businesses and companies not involved in financial services will be exempted. The "Treasury Statement on Developing Innovative Australian Digital Asset Industry" released on Thursday detailed plans to regulate digital asset platforms and payment stablecoins under existing financial service laws. The Treasury wrote that this move is consistent with similar regulatory approaches in the European Union and Singapore. The statement pointed out: "By aligning with international best practices, Australia can enhance our global competitiveness in the field of digital assets." Notably, both the EU and Singapore have taken significant measures to regulate cryptocurrencies. The EU introduced dedicated MiCA (Crypto Asset Market) regulations, while Singapore extended its existing Payment Services Act to include crypto service providers within its licensing and compliance framework.