Through the Eyes of the Australian Treasury: The Future of Web3
The Commonwealth Treasury's Statement 2025 on Crypto
On 21 March 2025, the Australian Treasury released a new statement on crypto regulation, sparking a wave of media reactions ranging from alarm to optimism.
The document is best understood as a strategic roadmap—an outline of where the Labor government sees crypto policy heading. It offers no immediate legislative changes, but instead signals the direction of future reforms aimed at shaping Australia’s digital asset economy.
Four Key Focus Areas
The Treasury’s proposed approach rests on four foundational pillars:
Digital Asset Platforms (DAPs)
These platforms, which hold and manage crypto assets for users, are expected to come under the umbrella of existing financial services laws. The focus will be on platforms providing trading, custody, or brokerage services. Notably, the scope of regulation will not extend to creators of digital assets or software developers.Payment Stablecoins
Stablecoins used for transactions will be regulated in line with Stored-Value Facilities (SVFs)—the same framework used for instruments like prepaid cards. This mirrors regulatory approaches in other jurisdictions, such as the EU’s Electronic Money Institution (EMI) licensing.Enhanced Regulatory Sandbox
The existing sandbox, which allows fintech startups to test products with relaxed regulatory requirements, is up for review. Recognising its underuse, the Treasury hints at potential reforms to make it more accessible and impactful.Innovation Initiatives
Broader technological developments—such as tokenisation, decentralised finance (DeFi), and central bank digital currencies (CBDCs)—are being monitored or explored in pilot programs. These efforts often involve collaboration with the RBA, ASIC, and the Digital Finance Cooperative Research Centre (DFCRC).
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The Debanking Issue
Debanking—the practice of banks cutting off services to crypto businesses—remains an unresolved concern. Although acknowledged in the statement, the Treasury stops short of proposing concrete solutions, instead reiterating support for transparency and continued dialogue with major banks. For many in the industry, this rings hollow, especially given that the issue was first raised in Senate hearings four years ago.
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INFO 225: Regulation by Guidance?
Another major talking point is ASIC’s proposed update to INFO 225. This guidance attempts to fold crypto services into the existing regulatory framework without introducing new laws. The Treasury notes that consultation is ongoing. Critics argue this piecemeal approach risks creating more confusion than clarity.
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A Strategy, Not a Solution
Though the language of the statement is forward-looking, there is still little in the way of concrete outcomes. Draft regulations for digital asset platforms have not been published, and the final version of INFO 225 remains uncertain. As a result, the sector continues to operate in a fog of ambiguity.
The timing of the announcement—on the eve of a federal election—adds a political dimension. It may be interpreted as a signal from the Labor government to tech-savvy voters that progress is being made. However, much like the previous Coalition government, actual delivery remains elusive.
Final Thoughts
While the Treasury’s message may offer some reassurance to observers, the reality is that Australia is still far from establishing a stable and transparent regulatory environment for crypto. The vision is there—but until it is backed by binding legislation and clear enforcement pathways, the blockchain sector remains in limbo.
In this environment, clarity isn’t just helpful—it’s essential. Without it, innovation continues to stall, and opportunities risk moving offshore.