Australian cryptocurrency exchanges may soon face stricter rules as regulators prepare to enforce new licensing requirements. The Australian Securities and Investments Commission (ASIC) is set to demand financial services licenses from crypto firms, with Commissioner Alan Kirkland revealing plans to extend these rules to major assets like Bitcoin and Ether. The announcement, made at the AFR Crypto and Digital Assets summit, suggests that the Corporations Act already covers most prominent cryptocurrencies.

In the coming months, ASIC plans to issue updated regulatory guidelines to clarify how specific crypto assets and products should be regulated. Kirkland emphasized the need for licensing to reduce risks and enhance market integrity, which could boost consumer confidence in crypto while encouraging responsible innovation. The updated draft guidance will be open for feedback from industry participants.

Despite this move, not everyone is convinced. Senator Andrew Bragg criticized Australia’s approach, arguing that the country has shifted from a leader to a laggard in crypto regulation. Bragg blamed the Labor government for delaying crucial legislation, stating that Australia's position in the global crypto race has been stifled.

Senator Bragg’s frustrations are fueled by the government’s recent rejection of his proposed crypto regulation bill, introduced in 2023. The bill, which aimed to regulate stablecoins and crypto exchanges, was shot down earlier this month, further fueling the debate over Australia’s future in blockchain innovation.

In the midst of this regulatory shake-up, the crypto industry in Australia waits with bated breath, hoping the new rules will balance safety without stifling progress.