Labor victory ensures ‘meaningful progress’ on digital asset regulation

Patrick Buncsi

6 May 2025

Digital assets trader BTC Markets has welcomed the re-election of the Albanese Labor Government, with the incumbent administration providing, it says, “the policy continuity and the stable governance” to meaningfully progress digital assets sector reform.

Caroline Bowler, chief executive of BTC Markets, a major Australian-owned digital assets exchange, said the Albanese Government’s electoral victory brings “a legislative mandate and a timeline” for effective digital assets regulation.

She praised a previous commitment from Labor to release draft legislation on digital assets within 100 days of the election as well as its 2026 deadline for enacting a fit-for-purpose regulatory framework for Digital Asset Platforms (DAPs) and stablecoin payment systems.

The proposed draft legislation seeks to improve the transparency of digital asset providers and traders, provide increased consumer protections, and boost innovation and competitiveness in the digital assets sector.

The reforms, Bowler added, will benefit by being built into the existing Australian Financial Services Licence (AFSL) regime.

“This approach avoids the pitfalls of imposing high-cost, restrictive market operator-style licences, and instead offers a principles-based structure that promotes innovation while safeguarding retail investors.”

She added: “It aligns Australia with international best practice, helping to attract foreign capital, retain local talent, and prevent further offshoring of digital asset businesses.”

The draft legislation will cover businesses providing common digital asset products (such as cryptocurrencies and stablecoins) with an underlying custody arrangement, including trading platforms, custody products and certain brokerage arrangements. As well, those providing advice on using DAPs will also be covered by the legislation.

Digital assets could deliver a notable economic boon to Australia, with global consultancy Accenture forecasting a $60 billion per year bump to national GDP by 2030 as a result of a well-regulated digital assets sector.

Additionally, appropriately applied DAP policy levers could see the addition of up to 1,000 new start-ups and $15 billion to $20 billion in investment in the digital assets sector in 2030.

BTC, founded in 2013, counts more than 360,000 platform users and over $28 billion in cryptocurrency traded, touting itself as Australia’s fastest digital asset trading platforms.