Australian regulator wants to streamline licensing of crypto companies, 2026/01/27 14:27:51

The chairman of the Australian Securities and Investments Commission (ASIC), Joe Longo, called the lack of regulation of cryptocurrencies a serious problem, calling on the country’s authorities to eliminate this gap in legislation as soon as possible.

The department believes that it is becoming increasingly difficult for regulatory agencies and law enforcement to track transactions made through rapidly developing services that work with digital assets, payments and artificial intelligence. Companies like these operate in a market with unclear regulations, exposing Australians to the risk of fraud and poor advice, officials worry. 

Requirements for the activities of crypto companies in different countries differ, and this leads to confusion, because users receive different levels of protection, the head of ASIC said.

Last November, the Australian Parliament approved in the first reading amendments made by the government to legislation on corporations and the structure of digital assets. This draft law stipulates that crypto platforms are required to obtain a license from the local regulator to provide financial services. Longo called for the bill to be passed this year so that crypto companies know the exact requirements for services and cannot avoid oversight.

The head of the Digital Economy Council of Australia, Darcy Allen, proposed that ASIC create a “regulatory sandbox” for crypto companies where they could test their financial services and products for a year without a license. 

At the end of last year, the Federal Court of Australia ordered NGS Crypto to cease operations due to lack of a financial license. Only $4.4 million of the $40 million invested was returned to investors.