Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches

Core Points - Australia is proposing new legislation that would impose penalties of up to 10% of annual turnover for digital asset platforms that breach the new rules [1] - The draft legislation requires exchanges and operators to obtain an Australian Financial Services Licence, with penalties including A$16.5 million (US$10.9 million), three times the benefit gained, or 10% of annual turnover for dishonest conduct [1][3] - The consultation period for the draft law is open until October 24, aiming to regulate a sector that includes major players like Coinbase and Kraken [3] Regulatory Framework - The new rules will extend the Corporations Act to digital asset platforms, enhancing consumer protections and formal licensing requirements [5] - Smaller platforms holding less than A$5,000 per customer and processing under A$10 million in annual transactions will be exempt from the full regulatory burden [5] - The Australian Taxation Office (ATO) already has the authority to impose fines up to three times the amount evaded for serious breaches [2][3] Industry Impact - The proposed regulations reflect a balancing act by policymakers to protect investors while fostering innovation in the digital asset space [6] - Australia's financial regulators have expressed concerns over the risks associated with increasing retail investment in cryptocurrencies [4] - Recent actions by AUSTRAC, including requiring Binance's local arm to appoint an external auditor, highlight ongoing scrutiny of the industry [4] Additional Measures - The Australian Securities and Investments Commission has granted class relief to intermediaries distributing stablecoins from licensed AFS providers until June 2028, allowing them to operate without separate market, clearing, and settlement licenses [7]