Australian Regulators Address Gaps in Cryptocurrency Oversight

The cryptocurrency industry in Australia faces a fragmented regulatory landscape that has raised concerns among the country’s financial regulators. The Australian Securities and Investments Commission (ASIC) has identified these regulatory gaps as one of the most significant challenges to building trust in the sector during 2026 and beyond. According to specialized reports, the Australian government is actively implementing legislative solutions to close these oversight gaps.

The context: why regulatory gaps exist

Digital asset trading and custody platforms have grown without a comprehensive regulatory framework that establishes clear standards. These gaps have allowed some operators to operate without proper licenses, creating potential risks for investors. ASIC recognizes that the lack of specific regulation regarding who can offer cryptocurrency services poses a systemic risk to the local market, especially considering the increasing adoption of these assets among individuals and institutions.

The legislative response: new digital asset framework

To address this situation, Australian authorities have pushed forward the “Corporations Amendment (Digital Assets) Bill 2025,” a comprehensive initiative aimed at establishing clear standards in the industry. This legislation requires all platforms dedicated to trading and custody of cryptocurrencies to obtain an Australian Financial Services License (AFSL), thereby integrating into the country’s traditional regulatory regime.

Implications for the market

Licensing requirements represent a significant turning point. By closing these regulatory gaps, it is expected to strengthen consumer protection and create a more transparent operating environment. Although this may incur compliance costs for platforms, it also provides legal certainty and contributes to the legitimacy of the crypto sector in Australia.