Australia Crypto Laws Bring 10% Turnover Penalties on Violations

Australia Crypto Laws Announced for Exchanges Like Coinbase, Kraken

Australia is on the way to tightening its regulation of digital asset platforms, with it releasing draft regulations that would impose fines of up to 10% of annual turnover in case of breach. 

Australia Crypto Regulation for Digital Asset Platforms.

On Thursday, the Australian Treasury declared that the digital asset platforms, including such leading exchanges as Coinbase and Kraken, may be severely penalized in case they violate the proposed rules. 

According to the proposed law, companies that do not act honestly, fairly, or commit misleading actions and unfair contractual conditions may receive the larger of three fines: A$16.5 million (US$10.9 million), three times the gain that they have made as a result of the violation, or 10 percent of their annual turnover.

Source: Bloomberg X

The proposed regulations will subject crypto exchanges and other operators of digital assets to the Corporations Act, which will oblige them to have an Australian Financial Services (AFS) licence. 

The law is based on the current anti-money laundering requirements that are managed by the financial intelligence agency of Australia (AUSTRAC) and supplements the current examination of crypto transactions by the Australian Taxation Office (ATO) concerning the payment of capital gains tax.

Further Process To Formulate Final Rules

The Treasury will take industry input on the draft bill until October 24, 2025, and this will give the stakeholders a chance to shape the final framework. 

The consultation will take into account the effects on both large and small operators so that the smaller platforms with less than A$5,000 per customer and A$10 million of transactions per year are not subjected to the full regulatory impact.

The authorities emphasized that the consultation process is to balance the security of investors and innovation in the Australian crypto sphere.

Retail Risks in the AUSTRAC Enforcement.

The regulatory bodies have constantly raised the issue of exposure of retail investors to risks in the crypto market. In August 2025, the local branch of Binance was ordered by the AUSTRAC to hire an external auditor to resolve the issue of money laundering and financing terrorism.

The rules suggested by Treasury expand consumer protection to digital asset and tokenized custody platforms, establishing an official system of accountability. In the meantime, the ATO still has the right to fine up to three times the value of the taxes avoided, or even serve prison sentences in case of severe violations, which strengthens compliance incentives.

Some Flexibilities by ASIC

The Australian Securities and Investments Commission (ASIC) has recently issued a class relief on intermediaries distributing stablecoins issued by licensed AFS providers, separately. 

This interim relief lasts until June 2028 and remits the intermediaries of separate market, clearing, and settlement licences in circumstances where the stablecoins are issued by approved issuers.

Conclusion

The draft legislation will be one of the most important steps towards regulating cryptocurrencies in the country, as it provides fines of up to 10% of turnover and AFS licensing requirements, which simultaneously address the risk management and industry development.