Crystal Intelligence held this webinar to explore Australia’s evolving regulatory landscape. The second in a series on crypto regulation in the Asia Pacific region (APAC), the discussion focused on the current uncertainty clouding crypto regulation in Australia, what consumer protection requirements are set to be implemented, how to balance these with integrating a productive crypto ecosystem, and where the country’s regulatory position fits into the global crypto adoption context.
The expert panel included Jessica Chuah, Crystal Intelligence VP of Growth for the APAC region and Steve Vallas, the CEO of Blockchain APAC and advisor to several Australian Government regulatory entities.
So, let’s dive in.
Key takeaways:
- Australia awaits clarity: Multiple regulatory bodies (AUSTRAC, Treasury, ASIC, ACCC) are expected to announce their positions on crypto by end of 2025, though coordination challenges remain
- Block Earner case is pivotal: The High Court case will establish crucial definitions for crypto-based financial products and significantly shape Australia’s regulatory framework
- AUSTRAC tightens oversight: Stricter assessments are reducing registered digital currency exchanges from over 400, with increased enforcement to combat fraud and scams
- APAC shows divergent trends: Singapore is slowing momentum with conservative stances, while Hong Kong and Korea accelerate regulation and attract institutional investment
- UAE emerges as global hub: Dubai and Abu Dhabi’s clear frameworks and physical presence requirements are attracting global financial institutions from Asia, Europe, and the US
- US advances at multiple levels: Significant state-level work over the past two years, combined with the current administration’s overtly pro-crypto stance, is driving momentum forward
- MiCA faces implementation hurdles: The EU’s regulatory framework is experiencing teething problems as member states navigate compliance and enforcement
- Bottom line: Clear, coordinated regulation is essential for crypto to thrive, with education and cross-border collaboration as critical success factors
Crypto regulation in Australia: an overview
The discussion began with the big question of where Australia stands now in its push towards crypto regulation. Steve quipped that “we’re all like children waiting for our Christmas presents”, as crypto industry role-players still await regulatory clarity, which he hopes will emerge around the end of the year.
Although Australia once had a historically progressive stance on crypto adoption, Steve noted that implementing and integrating a clear regulatory framework has more recently “fallen away,” lagging behind countries like the US and United Arab Emirates (UAE).
However, the relevant Australian regulatory entities indicate that a firm position on crypto regulation can be expected by the end of 2025.The Australian Transaction Reports and Analysis Centre (AUSTRAC), the Treasury, the Australian Securities and Investments Commission (ASIC), and the Australian Competition and Consumer Commission (ACCC) are all expected to make announcements on different aspects of crypto definition, adoption, and regulation imminently.
Looking at other positive signs of momentum for crypto in Australia, Steve highlighted the increased volume of work being done by AUSTRAC in the digital asset and crypto sector, and that the ACCC is rolling out its scams framework to cover digital assets in addition to traditional financial instruments. While all the relevant structures are currently working hard in their individual silos, the aim is to bring it all together into a coherent framework.
Jess added that she recently attended the recent Global Anti-Scam Alliance (GASA) summit, which was held against the backdrop of a global over-$1T loss to scams. Jess was amazed to see how law enforcement, the private sector, banks, Amazon, big tech, Mastercard, and others are all working together on the anti-scam project, and Jess and Steve’s discussion turned to the situation in Australia.
Scams and misconceptions in the crypto regulation space
Steve explained that, unfortunately, due to a lack of familiarity with crypto, everything to do with crypto was seen as a possible scam by the Labor government, rather than understanding that scams are only an entity within the larger crypto environment.
On a recent trip to Singapore, Steve noticed the visible signs everywhere warning about scams of all sorts, not just crypto-related, while nothing is comparable in Australia. A major education program is needed about the crypto environment, and scam avoidance in particular.
Jess pointed out that with romance scams, for example, victims are often reluctant to report them to the authorities out of embarrassment and humiliation. Steve added that many Australians believe they are too savvy to be caught by scams, while, without any relevant education, they are, in reality, vulnerable.
Consumer protection and regulatory coordination in Australia
Jess then asked about Australia’s efforts to safeguard consumers. While Steve sympathized with the many often underfunded regulatory bodies striving to protect consumers within their designated areas, he noted gaps between their jurisdictions that criminals actively exploit. He voiced frustration over the delay in establishing a comprehensive crypto regulatory framework, which he considers necessary to resolve many existing issues and called a “coordination challenge.”
The Block Earner case and its implications for crypto regulation in Australia
A seminal moment will be the final resolution of a case going back and forth between Block Earner, a fintech company whose key product is home loans using Bitcoin as collateral, and ASIC. Currently, before the High Court, the case hinges on the definition of financial products, and after appeals back and forth between the parties, the outcome will be highly significant for how crypto will be regulated in Australia.
ASIC challenged Block Earner by arguing that its products were unregistered managed investment schemes and/or derivatives and therefore required a financial services license.
While the primary Federal Court judge had ruled in ASIC’s favor by defining Block Earner’s products as’ financial products,’ Block Earner launched an appeal. In April this year the Federal Court, under a different judge, found that Earner and Access weren’t financial products under the Corporations Act for several reasons, the main one being that the Terms of Reference explicitly state that the loaned cryptocurrency would not be used to generate a financial benefit for the customers, but rather any financial benefit beyond the agreed fixed interest rate would accrue to the Block Earner company itself, which was indeed what was happening.
As a result, ASIC has appealed to the High Court, Australia’s highest legal authority, and on September 17, the Court agreed to hear the case. The date for the hearing hasn’t been set yet, but the outcome will significantly influence how crypto is regulated in Australia. Crypto-based financial products will need to be clearly and definitively classified. Steve believes that regardless of the case’s resolution, the most important result will be that it finally brings clarity to crypto’s regulatory status. On September 17, 2025, the High Court announced it would soon issue its final judgment.
Developments in Australian crypto regulation
Australian regulators, especially AUSTRAC, have changed how they supervise reporting entities, mainly digital currency exchanges (DCEs). In the past, registration was simple and rarely enforced, with few cancellations or challenges. However, the quick growth to over 400 registered DCEs has raised concerns about effectiveness, hinting at potential fraud and scams. As a result, AUSTRAC is making assessments stricter, lowering numbers, and increasing oversight.
Another major development is the expansion under “tranche two,” which dramatically widened the scope of reporting entities. This has created capacity challenges both for AUSTRAC, which has not expanded proportionally, and for businesses now required to submit suspicious matter reports. To manage the burden, AUSTRAC has emphasized public signaling and visible enforcement actions to deter non-compliance.
Cross-border cooperation remains weak. Law enforcement is under-resourced, evidence collection is difficult, and recovery of stolen assets is rare. Efforts like FATF’s travel rule and closed-loop networks face technical and coordination hurdles, slowing effective data sharing.
Beyond AUSTRAC, other regulators are increasingly engaged: the Australian Tax Office (ATO) has focused on global information-sharing frameworks, the Australian Prudential Regulation Authority (APRA) is paying closer attention to stablecoin risks, and the ACCC is slowly addressing crypto-related scams. The Australian landscape is now characterized by overlapping regulators and growing seriousness about crypto regulation.
Crypto regulation in APAC: the trend towards localization
Moving along on Jess and Steve’s journey around the world, the conversation turned to the rest of APAC. Steve neatly described how he saw the current position of the region.
Singapore, once the crypto hub of APAC, has seen a slowing of momentum since 2022, when the authorities began taking a more conservative stance, and the Monetary Authority of Singapore (MAS) has prioritized firm stablecoin frameworks and strong consumer safeguards.
Hong Kong has gone the opposite route, accelerating stablecoin regulation, growing market confidence and attracting institutional attention. Hong Kong could become the new crypto hub in the region.
Like Hong Kong, Korea is emerging as a key market for investors due to positive government shifts and growing institutional participation. While Japan is also developing stablecoin and holding regulatory discussions, it is showing somewhat less enthusiasm than Korea.
In Vietnam, Indonesia and Taiwan, governments are introducing high entry thresholds for Virtual Asset Service Providers (for example, Vietnam’s US$400M contribution requirement), while local conglomerates are merging with global exchanges to form mega-VASPs.
Crypto regulation in the UAE
Through the two cities of Dubai and Abu Dhabi, the UAE is rapidly becoming one of the world’s major crypto hubs. Alongside its clear regulatory framework, the UAE has adopted a ‘boots on the ground’ approach, which means that crypto businesses which want to operate any crypto organization out of these centers, must physically bring people in to live there.
From primarily attracting attention in Asia, the acceptance of the UAE as a prime investment center has spread to Europe and with the changes in the US crypto approach, also now includes the enormous US market. Steve mentioned how extraordinary it is to attend a crypto event in the UAE and experience the vast array of experts descending on that market to explore its economic opportunities. The region is now a magnet for global financial institutions.
Crypto regulation in the USA
Turning to the USA, Steve made the point that although it appears as if the US has only taken notice of crypto since the current government got into crypto, a huge amount of work was already being done at the State level, but without fanfare, over the last two years. With the January resignation of the previous government’s anti-crypto Securities and Exchange Commission (SEC) chief Gary Gensler, the new regime has publicized its overtly pro-crypto stance.
Having visited Washington frequently in 2025, Steve describes what is happening now: “The back-channel conversations, the goings-on backwards and forwards, the parliamentary machinations, are all a reflection of how much energy is being put into moving crypto forward.” But with so much happening all the time, a lot more progress is being made than is visible in the constant churn of daily news.
Markets in Crypto Assets (MiCA) and the European Union (EU)
While once hailed as the ideal way to regulate crypto across many jurisdictions, several issues have arisen during its implementation in some EU member states. Some smaller countries are wanting a more visible profile, others are itching at the restraints being put on them by regulations, as less scrupulous companies seek out less strict European markets, leading to a possibly expanded role for European Securities and Markets Authority (ESMA) based in Paris. Despite the very definite progress MiCA represents, teething problems have cut into the early optimism of a year ago.
Conclusions on crypto regulation in Australia and globally
Jess and Steve agreed that crypto cannot thrive without clear, coordinated regulation, Australia’s situation being a prime example of that truth. While APAC is currently somewhat fragmented, the EU and US are shaping policy direction as cross-border data-sharing accelerates.
Before closing the discussion, Jess reminded us of Steve’s APAC Policy Week to be held on March 10, 2026, in Sydney, which will provide a useful platform for bridging international experiences. Jess and Steve agreed, however, that ultimately, clarity, collaboration and education will determine whether APAC can position itself as a leader in responsible crypto innovation.
Watch the full webinar
