The Labor Party has secured another term in government, and with it, a renewed opportunity to deliver long-promised digital asset reforms. The crypto industry, which has spent much of the last three years navigating uncertainty, now turns its attention to whether 2025 will be the year words become laws.
Back in April, Treasury released its Statement on Developing an Innovative Australian Digital Asset Industry, setting out a reform agenda that, if implemented, would mark the most significant regulatory shift for crypto in Australia’s history.
The statement signals a more wholistic and industry-aligned approach than earlier proposals, and compared with ASIC’s proposed changes to INFO225 which focus more narrowly on the existing legal framework.
What Labor has promised
According to the policy roadmap, the Albanese Government has committed to the following:
- A new licensing regime for Digital Asset Platforms (DAPs): Crypto exchanges and custody platforms will be required to obtain an Australian Financial Services Licence (AFSL), rather than a full market licence, aligning with industry calls for proportionate regulation. Additional requirements will apply around custody, disclosures, and safeguarding client assets.
- Regulation of stablecoins under payments law: Stablecoins will be brought into the Stored-Value Facility (SVF) regime, subject to oversight by APRA. This will apply capital and redemption standards familiar to payments providers, not crypto-native businesses.
- Targeted exemptions and thresholds: Not all digital asset activity will be captured. Non-financial product tokens, DeFi protocols, software developers, and small-scale DAPs may fall outside the core obligations, or benefit from scaled compliance requirements.
- A review of the Enhanced Regulatory Sandbox (ERS): The government has committed to reviewing the ERS to better support product testing by startups and emerging fintech businesses—though details remain light.
- Consumer protection obligations: DAPs and tokenised SVFs will be subject to existing AFSL duties—such as acting honestly and efficiently—as well as bespoke rules to address the unique risks of digital assets.
- A response to debanking: Labor has acknowledged the role of debanking in stifling competition and innovation and committed to working with industry and the big four banks to improve transparency and fairness.
In a joint statement with Treasurer Jim Chalmers, Assistant Treasurer Stephen Jones and special envoy for cyber security and digital resilience Andrew Charlton recognised the importance of crypto in Australia’s economy.
“We know that digital assets and blockchain represent big opportunities for our economy, financial sector, payments industry and capital markets”
“We want to seize these opportunities and encourage innovation at the same time as making sure Australians can use and invest in digital assets safely and securely with appropriate regulation.”
In addition to these reforms, Labour is expected to pursue broader reforms to payment systems regulation and to extend the AFSL regime to a broader range of payment providers following earlier consultations during its first term in government.
Will it stick?
After years of consultation and industry lobbying, the policy framework has taken shape. But the track record on delivery is mixed. The Liberal Party, through Senator Andrew Bragg first committed to crypto regulation in late 2022, following the FTX collapse, and industry frustration has grown as timelines slipped and clarity remained elusive.
The new statement reflects a more pragmatic tone, aligning Australia with international standards seen in the European Union, Singapore, and increasingly the United States. Yet, the real test will be whether Treasury and ASIC can move from policy design to implementation within the next 12 months.
With a fresh mandate and growing political attention on digital assets, including bipartisan interest, the government has the opportunity to bring long-awaited regulatory clarity to Australia’s digital economy. These reforms have the potential to retain talent and unlock growth in Australia, while ensuring appropriate consumer protections. Whether they take it remains to be seen.
