It’s been a rough day for crypto in Australia.
ASIC, the nation’s securities and crypto watchdog rolled out updated guidance for cryptocurrencies with one clear message: compliance is the price of admission.
The 28-page consultation paper tells crypto businesses it’s on them to figure out if they need licenses for their offerings — and to get them.
Verbatim: “It is your responsibility to determine whether your offerings, in relation to digital assets that are financial products, require you to hold one or more licenses with the appropriate authorizations.”
Kate Cooper, Australia CEO and head of APAC for Zodia Custody, tells MONIIFY: “Compliance is no longer optional — it’s now the price of entry for crypto businesses in Australia.”
Meanwhile, the Treasury chimed in with its agreement, welcoming ASIC’s move and promising draft legislation…in 2025. Remember, this is the same institution which promised to do it by 2024. 😏
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Clarity? Not really
The guidance suggests firms promoting cryptocurrencies will need licenses and offers 13 examples of how this could work.
ASIC promises “safe harbor” for those who start the licensing process, shielding them from lawsuits while they figure it out.
But for the crypto industry, the rules are anything but clear.
Michael Bacina, digital lawyer and former Chair of the Digital Economy Council of Australia, points out to MONIIFY that ASIC’s position echoes US SEC Chair Gary Gensler’s infamous ‘come in and register’ mantra.
This tech doesn’t fit neatly into old laws, and ASIC hasn’t provided a clear roadmap, he says.
It does fit into existing laws, is what ASIC is arguing in its announcement, saying its “existing approach to financial services licences will apply to digital assets.”
MONIIFY contacted ASIC outside of Australian office hours and was awaiting comment at the time of publishing.
Critics also argue the barrier isn’t just bulwarked by the rules — it’s the cost of compliance. Bacina estimates legal and compliance costs for a market license could hit $10 million in the first few years.
Zodia Custody’s Cooper says the updated custody requirements — segregated funds, secure storage, audits, real-time monitoring — will crush smaller players while favoring the well-capitalized.
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Crypto backwater
Australia, the 13th-largest economy globally, sits behind only China and India in the eastern hemisphere. Yet it ranks a lowly 39th in crypto adoption. And it might go lower.
The industry says there is too much ambiguity in the regulator’s approach. As Blockchain APAC’s MD Steve Vallas puts it, ASIC’s new paper does little to ease concerns about uncertainty, timing, or implementation.
These are long-standing pain points that overshadow meaningful progress, he tells MONIIFY.
As it stands for Australia’s crypto firms, the message is clear: figure out the rules, pay the steep costs, and maybe, just maybe, you’ll survive. Smaller players? Good luck.
