Australia's Crypto Crackdown: What You Need to Know in 2025

Australia’s getting serious about crypto regulation—and it could reshape the entire region’s landscape.

The Albanese government is dropping a fresh regulatory framework next year, tackling one of the crypto industry’s biggest pain points: debanking. They’re partnering with Australia’s big four banks (Commonwealth, Westpac, ANZ, NAB) to solve it.

Here’s what’s actually changing:

The New Rules

• Crypto exchanges and custody services must meet existing financial services compliance standards
• Customer asset protection becomes mandatory (no more exchange hacks = lost funds)
• Financial services licenses now required (similar to traditional brokers)
• Minimum capital requirements to prevent fly-by-night operators

Beyond Crypto

• Central bank digital currency (CBDC) review underway
• Enhanced regulatory sandbox launching—businesses can test new fintech products without a full license

What This Means Australia’s positioning itself as a regulated crypto hub, not a Wild West. The debanking fix is the key—crypto companies have been locked out of traditional banking for years. If the big four banks re-engage, it’s a massive shift.

The risk? Over-regulation could push innovation elsewhere. But if they nail the balance, expect other countries to copy the playbook.