Australia has unveiled draft legislation to enhance oversight of cryptocurrency exchanges, extending finance sector regulations to include these entities. Assistant Treasurer Daniel Mulino emphasized that this law is a crucial part of the Albanese Government's digital asset strategy. Currently, only exchanges dealing with financial products must register, while the draft will require all crypto service providers to obtain an Australian Financial Services Licence. This includes two new financial products: digital asset platforms and tokenized custody platforms. The legislation aims to implement specific rules for activities like wrapped tokens and staking, alongside penalties for non-compliance of up to 16.5 million Australian dollars or 10% of annual turnover. However, low-risk platforms managing less than 5,000 AUD per customer or generating less than 10 million AUD annually will be exempt from these regulations. The government seeks feedback on the draft to ensure clarity and effectiveness, aiming to protect consumers and legitimize trustworthy operators in the sector.

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