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Australia Proposes Penalties Reaching 10% Of Revenue For Violations Of Cryptocurrency Regulations
Australia intends to impose fines of up to 10% of annual revenue on digital asset platforms that violate new regulations, according to draft legislation unveiled on Thursday.
The proposal mandates that exchanges and other operators obtain an Australian Financial Services Licence. Companies that do not operate honestly and fairly, or that partake in deceptive practices and unfair contract terms, would incur the greater of three penalties: A$16.5m (US$10.9m), three times the profit obtained, or 10% of their annual revenue.
These regulations enhance existing anti-money laundering responsibilities monitored by AUSTRAC and complement the Australian Taxation Office’s examination of crypto transactions for capital gains tax purposes.
Consultation Period Set To Shape Rules For Industry Heavyweights
The ATO already has the authority to impose fines up to three times the amount evaded or to pursue imprisonment for serious violations.
The draft legislation will be open for consultation until Oct. 24. This represents one of the most significant efforts to regulate an industry that encompasses major global entities like Coinbase and Kraken.
Australia’s regulatory bodies have consistently cautioned about the dangers associated with the rise in retail crypto investments. The nation’s securities and prudential regulators, along with the central bank, have advocated for stricter standards. In August, the financial crimes agency AUSTRAC mandated that Binance’s local division appoint an external auditor due to concerns regarding money laundering and terrorism financing.
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@binance faces mandatory audit in Australia over serious AML and terror financing concerns amid nationwide enforcement campaign.#Binance #Australiahttps://t.co/lVsofJm6gC
— Cryptonews.com (@cryptonews) August 22, 2025
New Rules Extend Corporations Act To Digital Asset Platforms
The Treasury stated that the new framework will incorporate digital asset and tokenized custody platforms under the Corporations Act, thereby extending consumer protections and formal licensing obligations.
Smaller entities will not bear the full weight of these regulations. Platforms that manage less than A$5,000 per customer and handle under A$10m in annual transactions will be exempt.
This initiative reflects a careful balancing act, with policymakers aiming to safeguard investors while fostering innovation. Industry input over the coming month will influence the final structure before it proceeds to parliament.
In a separate development, the Australian Securities and Investments Commission last week provided class relief to intermediaries distributing stablecoins issued by licensed AFS providers. This measure, effective until June 2028, exempts them from needing separate market, clearing, and settlement licenses when dealing with stablecoins from approved issuers.
This relief is the first of its kind in Australia, indicating regulators’ readiness to offer flexibility where oversight is already integrated into existing financial licenses.
The post Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches appeared first on Cryptonews.
