The Australian government will adopt digital assets into the economy, boosting the nation’s new crypto regulation structure.
The European Union (EU) and Singapore’s efforts to regulate and integrate digital assets into their economy have inspired Australia’s whole-of-government approach. The Australian government has said in a white paper recently released by the Australian Treasury that it will adopt real-world assets (RWAs), tokenization, and central bank digital currencies (CBDCs) to improve its finance ecosystem.
Although the government has ruled out a retail CBDC for now, it believes that a wholesale CBDC model and tokenized settlement technology are essential to enabling greater asset access and market efficiency.
Australia’s New Crypto Regulation Framework
The Reserve Bank of Australia, the Australian Securities and Investment Commission, and the Australian Treasury are preparing to start pilot projects using tokenized money. Hence, markets for tokenized assets can lower settlement risk, simplify trading procedures, decrease transaction costs, improve automation, decrease reliance on numerous financial intermediaries, and offer more access to assets.
Additionally, the white paper for the crypto regulation presents a licensing framework for cryptocurrency exchanges (known in Australia as Digital Asset Platforms, or DAPs). DAP operators must use third-party custodians to keep clients’ assets while adhering to relevant financial service duties like sufficient capital and disclosure laws.
According to the white paper, the government plans to address industry concerns about de-banking by using its DAP licensing framework to enable banking partners to manage risk better.
Australian Government Track Crypto Scammers Claiming to Be Binance Exchange
Australian authorities are tracking cryptocurrency scammers posing as Binance, the biggest cryptocurrency exchange in the world, after a string of fraud attacks targeting local customers. Sources familiar with the matter revealed that law enforcement agencies have notified more than 130 potential victims as part of an intense effort to counter the scam.
Previously, the scammers claimed that victims’ accounts were compromised while posing as Binance representatives via encrypted messaging apps and SMS. The messages contained fake verification numbers and a contact phone number that directed victims to a fraudster hotline.
Once they dialed the number, the scammers instructed victims to move their cryptocurrency to a trusted wallet, which they controlled. The crypto scam was discovered thanks to Operation Firestorm, a global initiative started last year to stop transnational crime groups.
Although the AFP (Australia Federal Police) collaborated with international authorities to track the criminals, fund recovery was practically impossible because the scammers had already transferred the stolen money through a web of wallets. AFP Commander Cybercrime Operations Graeme Marshall said that the agency is coordinating closely with other federal agencies to ensure that any victims in Australia contacted by these scammers were identified quickly and advised on how to secure their cryptocurrency wallets.
Authorities have advised the victims of this fraud to report the occurrence to the police via ReportCyber, note the reference number AFP-068, and contact their bank or cryptocurrency exchange immediately. Despite its legal issues, Binance Australia has cooperated with officials across the nation to fight the scam.
Will a Less Stringent Crypto Regulation Heighten Scams?
The Australian Securities and Investments Commission (ASIC) filed a lawsuit against Binance Australia Derivatives in December 2024, alleging that the platform had incorrectly classified retail investors and denied them necessary consumer security. The joint action by the Australian authorities follows growing concerns about cryptocurrency scams in the country.
Last month, the Australian Competition and Consumer Commission expressed concern about the consequences of President Donald Trump’s administration’s loosening crypto laws in the United States. The ACCC’s annual fraud report found that cryptocurrency scams significantly contributed to the over $1.3 billion Australians lost to investment fraud in 2023.
Swyftx Trading Platform Acquires New Zealand’s Easy Crypto Exchange
Meanwhile, Swyftx, one of Australia’s largest cryptocurrency exchanges, has confirmed its acquisition of Easy Crypto. Easy Crypto is the biggest local cryptocurrency trading platform in New Zealand, having served over 300,000 users since its launch in 2018 by Alan and Janine Grainger.
During its seven-year existence, the exchange generated a trade volume of over NZD 2 billion (AU $1.81 billion). According to a recent Swyftx poll, more than 4 million Australian residents own at least some digital currencies.
With the deal, Swyftx will become one of the biggest exchanges in the Oceanic region, increasing its customer base to 1.1 million.
