Banks welcome progress on new digital asset regulations

Banks welcome the introduction into Parliament today of legislation to create a new regulatory framework for digital asset businesses.

ABA CEO Simon Birmingham said given the growing use of digital assets in our economy it was crucial they were captured under a strong and robust regulatory framework.

“The role of digital assets in our economy is increasing and they should be subject to strong regulatory oversight, including ensuring platforms hold Australian Financial Services Licences,” Mr Birmingham said.

“When consumers use digital assets such as crypto and interact with platforms, they have the right to similar protections against fraud or wrongdoing as is seen in the rest of the financial services industry.

“Australians are making more use of digital assets, but the rules around their use have not kept pace. This new regulatory framework helps to close that gap by ensuring platforms must meet standards that protect consumers and maintain trust in our broader financial system.

“Banks will continue to work with Government, regulators and industry stakeholders to support the effective implementation of this new regulatory framework.”