Australia warns about legal loopholes in the cryptocurrency sector

2026-01-31 02:25:27

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The Australian financial regulator has identified gaps in cryptocurrency oversight as a major risk heading into 2026, warning that unlicensed platforms and unclear regulations could expose consumers to fraud and misleading practices. The Australian Securities and Investments Commission (ASIC) states that the rapid growth of crypto businesses, digital payments, and AI operating at the legal boundaries is increasing compliance complexity and creating uneven levels of consumer protection. ASIC Chairman Joe Longo emphasized that the differences in global regulatory approaches are putting greater pressure on the domestic market.

To address this, the government has proposed the Corporate Law Amendment (Digital Asset Framework) Bill 2025, requiring crypto custody and trading platforms to hold a financial services license. This legal framework is expected to bring up to $24 billion in annual productivity value, making 2026 a pivotal year for Australia’s digital asset policy.

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