AUSTRALIAN SENATE TO LAUNCH CRYPTOCURRENCY INQUIRY

The world of cryptocurrency and digital assets is rapidly evolving, and Australia is determined to keep pace. senate inquiries. In 2025, the Australian Senate again considered cryptocur-rency and digital assets in the context of a broader inquiry into Financial Technology and Regulatory Technology. 7 This inquiry was chaired by Liberal Party Senator Andrew Bragg. In 2025, the Senate inquiry was amended to look specifical-The recent announcement of an Australian Senate inquiry into cryptocurrency marks a pivotal moment for the nation's approach to this burgeoning industry. On the Senate referred an inquiry into supporting the development of sovereign capability in the Australian tech sector to the Senate Finance and Public Administration Reference Committee for inquiry and report by . Submissions closing date: nbsp;23 FeThis inquiry promises to delve into a wide range of critical issues, from the potential benefits of blockchain technology to the risks of money laundering and the contentious practice of de-banking crypto exchanges.After a period of regulatory uncertainty and legislative inaction, this renewed focus signals a potential turning point. A senate inquiry has heard banks are banning crypto start-ups because of a regulatory gap An estimated one in six Australians own cryptocurrency Australians lost more than $25 million in bitcoinPrevious inquiries, such as the one chaired by Liberal Party Senator Andrew Bragg, have laid the groundwork, but this latest effort aims to consolidate those findings and forge a clear path forward.

The inquiry’s scope is broad, encompassing the opportunities and barriers within the FinTech and RegTech sectors, with a particular emphasis on the role of digital assets.This investigation isn’t just about controlling risk; it's about fostering innovation and positioning Australia as a leader in the global digital economy.The outcome of this inquiry could reshape Australia's financial landscape, providing much-needed clarity for businesses and consumers alike, and potentially serving as a model for other countries navigating the complexities of the digital asset revolution. A Senate inquiry has recommended changes to taxation laws, licensing and regulatory regimes to encourage digital and crypto-asset businesses to set up in Australia.This article explores the key issues at stake, the potential outcomes, and what it all means for the future of cryptocurrency in Australia.

The Genesis of the Cryptocurrency Inquiry

Australia's journey towards regulating digital assets has been marked by a series of parliamentary inquiries and consultations.These efforts have often been characterized by conflicting viewpoints and a lack of decisive action. After months of inquiries and input from stakeholders across the board, the Select Committee on Australia as a Technology and Financial Centre (Committee) has finalised its long-awaited report, containing 12 recommendations that, if implemented, will significantly alter the regulation of Australia s growing digital asset ecosystem.To truly understand the significance of this latest Senate inquiry, it's essential to examine the groundwork laid by previous investigations. welcome this opportunity to contribute to the Senate Inquiry into International Digital Platforms. Digital platforms play an increasing role in Australian public and private life they are gatekeepers that control our access to goods, information, and services. However, withFor example, the Select Committee on Australia as a Technology and Financial Centre finalized a report containing 12 recommendations which has set the stage for this latest inquiry.

Past Inquiries and Key Recommendations

The earlier Senate inquiry, often associated with Senator Andrew Bragg, played a crucial role in shaping the debate around digital asset regulation. The Senate s Economic References Committee has been given the green light to launch an inquiry into digital currencies like Bitcoin and their use in Australia. Committee chair, Labor s SamThe Digital Assets (Market Regulation) Bill 2025, introduced as a Private Senators Bill, sought to establish a comprehensive framework for regulating the crypto industry. In a shocking turn of events, Trump proposes a tariff-free trade pact with Canada that could revolutionize North American trade as we know it! Meanwhile, theKey proposals included:

• Licensing for Exchanges: Requiring digital currency exchanges to obtain licenses to operate legally in Australia.
• Custody Requirements: Establishing clear rules for the safe custody of digital assets.
• Stablecoin Regulation: Addressing the unique risks and opportunities presented by stablecoins.

These recommendations were aimed at providing greater consumer protection and fostering trust in the digital asset market. Australia s regulatory approach to cryptocurrency and dig-ital asset exchanges has been characterized by a series of parliamentary inquiries and conflicting consultations, cul-minating in legislative inaction and regulatory uncertainty.While these previous attempts didn't immediately translate into legislation, they highlighted the urgent need for regulatory clarity.

Scope of the Current Inquiry: Key Issues Under Scrutiny

The current Senate inquiry into cryptocurrency and digital assets is expected to cover a broad range of topics. On Oct. 20, the Australian Senate Committee delivered a groundbreaking report calling for a complete overhaul of crypto legislation and licensing in the country. But, will it achieve its aim of transforming Australia into an international blockchain hub and providing a model for other countries to follow?This thorough approach aims to identify both the opportunities and the challenges associated with the growing digital asset ecosystem.Here are some of the key issues that are likely to be at the forefront of the inquiry:

• Australia’s Regulatory Approach: Evaluating the effectiveness of existing regulations and identifying areas for improvement.
• De-banking of Crypto Businesses: Investigating the practice of banks refusing services to cryptocurrency-related businesses.
• Consumer Protection: Ensuring adequate safeguards are in place to protect consumers from fraud and scams.
• Money Laundering Risks: Addressing concerns about the potential use of digital assets for illicit activities.
• Taxation Laws: Examining the existing tax laws and finding ways to encourage growth in digital and crypto-asset businesses in Australia.

De-banking: A Major Point of Contention

The issue of de-banking has emerged as a significant challenge for the Australian cryptocurrency industry. See full list on abc.net.auSeveral crypto businesses have reported having their bank accounts closed or denied access to banking services.This practice can stifle innovation and make it difficult for legitimate businesses to operate.

Why is de-banking happening? Australia. Theoretically, the Terms of Reference for the Australian Inquiry are much broader. They include the opportunities and barriers for the RegTech and FinTech sectors generally. But with two chunky Interim Reports under its belt, the remaining topics of interest have significant definition by now.Banks often cite concerns about regulatory compliance, particularly in relation to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.However, critics argue that de-banking is often arbitrary and disproportionate, effectively shutting down entire sectors of the digital economy.

The Senate inquiry will likely explore whether de-banking practices are justified and whether they comply with competition law.It will also consider alternative solutions, such as the creation of a regulatory framework that provides greater clarity and certainty for both banks and crypto businesses.

Potential Outcomes and Implications for the Australian Crypto Market

The findings of the Senate inquiry could have far-reaching consequences for the Australian cryptocurrency market. Bragg urged the Australian legislature to pass regulations for cryptocurrency in an effort to encourage cryptocurrency companies to start in Australia. [56] He also advocated for big tech companies like Facebook and Google to make a proportional number of content deals with smaller publishers as they do with larger ones. [57]Depending on the recommendations that are ultimately adopted, the regulatory landscape could undergo a significant transformation.Here are some potential outcomes and their potential implications:

• Clearer Regulatory Framework: The inquiry could lead to the development of a more comprehensive and well-defined regulatory framework for digital assets.This would provide greater clarity for businesses, investors, and regulators alike.
• Increased Consumer Protection: Stricter rules and regulations could help to protect consumers from fraud, scams, and other risks associated with cryptocurrency investments.
• Reduced De-banking: The inquiry could recommend measures to address the issue of de-banking, such as the introduction of a formal appeals process or the establishment of clearer guidelines for banks.
• Attracting Investment: A more favorable regulatory environment could attract greater investment in the Australian digital asset market, fostering innovation and economic growth.
• Global Leadership: Australia could position itself as a leader in the global digital economy by adopting a forward-thinking and well-balanced regulatory approach.

The Road to Becoming a Blockchain Hub

One of the primary goals of previous inquiries has been to transform Australia into an international blockchain hub. Australian Senator Andrew Bragg today introduced a new Bill to the Australian Senate proposing to regulate digital asset exchanges in Australia. The Digital Assets (Market Regulation) Bill 2025 ( Digital Assets Bill ) - builds on an earlier draft Bill published last year, the Digital Assets (Market Regulation) Bill 2025 which was also proposedThe latest inquiry could accelerate this process by creating a more attractive environment for digital asset businesses.This would include:

• Tax Incentives: Offering tax incentives to attract crypto companies and investors to Australia.
• Regulatory Sandboxes: Establishing regulatory sandboxes that allow businesses to test new products and services in a controlled environment.
• Education and Training: Investing in education and training programs to develop a skilled workforce for the digital asset industry.

Labor Senators' Perspectives and Potential Influence

The perspective of Labor Senators will be crucial in shaping the outcome of the cryptocurrency inquiry.As members of the governing party, their views and priorities will have a significant influence on the recommendations that are ultimately adopted.

While specific comments from Labor Senators regarding the current inquiry are not yet widely available, previous statements and policy positions provide some insights into their potential priorities.Labor has generally emphasized the need for strong consumer protection and responsible innovation in the digital asset space.They are also likely to be concerned about the potential use of cryptocurrencies for illicit activities.

Given these priorities, it is reasonable to expect that Labor Senators will advocate for a regulatory framework that strikes a balance between fostering innovation and mitigating risks.They may also push for measures to address the issue of de-banking and to ensure that consumers are adequately protected from fraud and scams.

The US Senate's Perspective: Lessons for Australia

The United States has also grappled with the issue of cryptocurrency regulation. De-banking the Australian Cryptocurrency Exchange ( Crypto Exchange ) industry could mean that Australian banks fall foul of competition law. In 2025, an Australian Senate inquiry investigated how to regulate cryptocurrencies, including considering de-banking.U.S. The report s recommendations for licencing digital currency exchanges and establishing a clear custody or depositary scheme for digital assets in Australia, gives credence to cryptocurrency as a viable currency and payment method. It would also provide cryptocurrency investors with some much-needed consumer protection.Senator Richard Blumenthal, Ranking Member of the U.S.Senate Permanent Subcommittee on Investigations (PSI), has been actively involved in senate inquiries related to digital assets.While the specific focus of US inquiries may differ, there are valuable lessons that Australia can learn from the US experience.

For example, the US has focused heavily on the potential for cryptocurrencies to be used for money laundering and other illicit activities. such as a risk of money laundering. De-banking the Australian Cryptocurrency Exchange ( Crypto Exchange ) industry could mean that Australian banks fall foul of competition law. In 2025, an Australian Senate inquiry investigated how to regulate cryptocurrencies, including considering de-banking. This article outlines a possibleThey have also examined the role of stablecoins and the risks they pose to the financial system. In March 2025, Senator Bragg introduced a Private Senators Bill in an effort to introduce substantial crypto regulation in Australia. The Digital Assets (Market Regulations) Bill 2025 would introduce licensing for exchanges, custody requirements and stablecoins.By studying the US approach, Australia can gain a better understanding of the challenges and opportunities associated with digital asset regulation.

Impact on Fintech and Regtech Sectors

The Senate inquiry's broader terms of reference include the FinTech and RegTech sectors. [WASHINGTON, D.C.] U.S. Senator Richard Blumenthal (D-CT), Ranking Member of the U.S. Senate Permanent Subcommittee on Investigations ( PSI ), isThis is significant because it recognizes that cryptocurrency is just one part of a larger ecosystem of technological innovation in the financial services industry.

A well-designed regulatory framework for digital assets could have a positive impact on the FinTech and RegTech sectors in Australia. Cryptocurrency and digital assets De-banking Other issues raised during the inquiry. Additional comments from Labor Senators. Appendix 1 Submissions, answers to questions on notice and correspondence. Appendix 2 Public hearings and witnessesBy providing greater clarity and certainty, it could encourage investment and innovation in these areas.It could also create new opportunities for businesses to develop innovative solutions for managing risk and complying with regulations.

For example, RegTech companies could develop tools to help cryptocurrency exchanges comply with AML and CTF regulations. Mark Zuckerberg grilled in six hour Senate hearing, the Australian Senate Inquiry into Fintech and Regtech Issues paper, and ASX CHESS Replacement draws closer to completion.FinTech companies could create new products and services that integrate digital assets into the traditional financial system.

Navigating Regulatory Uncertainty: What Crypto Businesses Should Do Now

Given the ongoing regulatory uncertainty surrounding cryptocurrency in Australia, it's important for crypto businesses to take proactive steps to protect themselves and prepare for the future.

Here are some actionable steps that crypto businesses can take now:

1. Stay Informed: Keep up-to-date with the latest developments in cryptocurrency regulation in Australia and internationally.Follow industry news, attend conferences, and engage with policymakers.
2. Comply with Existing Regulations: Even in the absence of specific cryptocurrency regulations, it's important to comply with existing laws, such as AML/CTF regulations and consumer protection laws.
3. Develop Strong Compliance Programs: Invest in developing robust compliance programs that address key risks, such as money laundering, fraud, and cybersecurity.
4. Engage with Regulators: Communicate with regulators and provide feedback on proposed regulations. Contact information for Senate Committees. Senior Clerk's Office Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia. Phone: 61 2 6277 3555. Email:Participate in consultations and submissions.
5. Seek Legal Advice: Consult with legal experts who specialize in cryptocurrency regulation.Get advice on how to comply with existing laws and prepare for future regulations.
6. Diversify Banking Relationships: Consider diversifying banking relationships to reduce the risk of de-banking.Explore alternative banking options, such as credit unions or international banks.

Addressing Common Questions About Cryptocurrency Regulation in Australia

The topic of cryptocurrency regulation often raises many questions.Here are some common questions and their answers:

Will Australia ban cryptocurrency?

It is highly unlikely that Australia will ban cryptocurrency outright.While some countries have taken this approach, Australia's approach is focused on regulation rather than prohibition.The goal is to create a framework that allows for responsible innovation while mitigating risks.

When will cryptocurrency be regulated in Australia?

It is difficult to predict the exact timeline for cryptocurrency regulation in Australia.The Senate inquiry could expedite the process, but it may still take several months or even years for new laws to be passed.However, the inquiry signals a renewed commitment to addressing the issue, which could lead to progress in the near future.

What will cryptocurrency regulation in Australia look like?

The specifics of cryptocurrency regulation in Australia are still uncertain.However, based on previous inquiries and policy discussions, it is likely that the regulatory framework will include licensing requirements for exchanges, custody rules for digital assets, and regulations for stablecoins.It will also likely address issues such as consumer protection and anti-money laundering.

Conclusion: A Turning Point for Cryptocurrency in Australia

The Australian Senate's launch of an inquiry into cryptocurrency and digital assets represents a significant turning point for the industry.This inquiry provides an opportunity to create a clear and well-balanced regulatory framework that fosters innovation, protects consumers, and positions Australia as a leader in the global digital economy.While the road ahead may be challenging, the potential rewards are immense.By addressing key issues such as de-banking, consumer protection, and money laundering, Australia can create a thriving and sustainable digital asset ecosystem.

The key takeaways from this article are:

• The Australian Senate is launching an inquiry into cryptocurrency and digital assets.
• The inquiry will address key issues such as de-banking, consumer protection, and money laundering.
• The outcome of the inquiry could have far-reaching consequences for the Australian cryptocurrency market.
• Crypto businesses should take proactive steps to prepare for future regulations.
• Australia has the potential to become a leader in the global digital economy.

This inquiry is a crucial step towards realizing that potential.By embracing innovation and addressing risks, Australia can create a vibrant and responsible digital asset ecosystem that benefits businesses, consumers, and the economy as a whole.