Australia's proposed encryption regulation draft: special legal regulations for wrapped tokens, public chains, and stake.

The Australian government officially released the regulatory draft for the crypto industry on 9/25, preparing to bring cryptocurrency exchanges under the management of the Financial Services Act. The draft expands the existing regulatory framework to include exchange operators, requiring them to obtain an "Australian Financial Services License" (AFSL). At the same time, special laws are being formulated to regulate functions such as wrapped tokens, public chain infrastructure, and staking. The authorities have opened the draft for consultation, with the deadline for submitting opinions set for 10/24.

Propose a roadmap for digital assets to lay the foundation for subsequent regulation.

In March of this year, the Australian government announced a digital asset roadmap, laying the policy foundation for the subsequent regulation of Crypto Assets. The roadmap clearly states that cryptocurrency platforms will be included under stricter Financial Service regulations, and it anticipates the introduction of corresponding legislative proposals.

Amend the Australian Companies Act, listing encryption platforms as two new financial products.

According to reports, Australian Deputy Treasurer Daniel Mulino announced the draft content at the international forum held by the Digital Economy Council of Australia (DECA) on 9/25. Firstly, the draft amends the Australian Corporations Act to define cryptocurrency platforms as two major "new financial products":

Digital Asset Platform (: A platform that provides Crypto Assets trading or services.

Tokenized Custody Platform ): A platform specifically designed for the custody of Crypto Assets for clients.

In other words, these cryptocurrency exchanges or custodians will be regarded as "financial product providers" similar to traditional financial companies.

Operators need to obtain a compliance license, and the crypto business is regulated by specific laws.

The draft clearly states that future crypto platform operators must obtain an "Australian Financial Services License" (AFSL) and register with the Australian Securities and Investments Commission (ASIC).

The draft simultaneously establishes special rules targeting wrapped tokens, public chain infrastructure, staking, and other core encryption businesses, and requires platforms to comply with safety standards for holding and settling crypto assets to avoid the past chaos of "misappropriating customer assets."

Assuming a violation, the maximum fine can reach tens of millions of dollars.

The draft clearly states that if an operator violates the regulations, they may face a fine of up to 16.5 million AUD (, approximately 10.8 million USD ), or three times the illegal gains, or 10% of the company's annual revenue, with the highest amount being used for calculation.

Additionally, if the platform's annual trading volume is less than 10 million AUD (, which is approximately 6.6 million USD ), and each customer's assets are below 5,000 AUD (, which is approximately 3,300 USD ), they will be exempt and not required to comply with these new regulations. In other words, small, low-risk encryption platforms will basically not be restricted by the new law.

Public consultation until October 24

Deputy Treasurer Murino finally stated that the authorities have opened the draft for consultation, with a deadline for submitting opinions until 10/24. He added that this feedback will serve as the basis for revising the draft, and the final version of the legislation will be formulated accordingly to prepare for the next phase of regulation for Australia's Crypto Assets industry.

This article on Australia's proposed encryption regulation draft: regulations for wrapped tokens, public chains, and staking first appeared in Chain News ABMedia.